Investigations by the Prosecutor's Office delve into the financial dealings of a German utility chamber in the United States, involving pension funds.
The Bavarian Pension Fund (BPK), a financial institution managing the retirement savings of twelve professional groups in Germany, has been under scrutiny due to its real estate investments in the USA. The Munich Public Prosecutor's Office is currently investigating these investments following the separation of the BPK's real estate chief, Rainer Komenda.
The investigation was initiated after the BPK presented certain "facts" to the prosecutor's office, which are now being examined to determine if there is initial suspicion of criminal activity. The details of the alleged criminal activity in the US real estate investments by the BPK are not specified in the available information.
The BPK has invested hundreds of millions of euros in alleged luxury buildings in five US metropolitan areas since 2018. However, tenants in two lawsuits have spoken of dilapidated and partly empty buildings. Three of the projects developed by Michael Shvo, a convicted tax evader, who the BPK invested in, are reportedly on the brink of collapse.
The BPK manages the German pension money of professionals such as doctors, lawyers, and chimney sweeps. The investigation by the Munich Public Prosecutor's Office is ongoing, and it is expected that the Parliament will soon determine if there were any criminally relevant violations.
It is important to note that the presumption of innocence applies in this investigation. The Bavarian State Parliament has discussed the allegations in a closed session of the Budget Committee, but no authoritative information or news regarding the investigation or related legal issues is available as of August 2025.
For accurate and up-to-date details on this topic, it is recommended to consult official statements or reports from the Bavarian Pension Fund (Bayerische Versorgungskammer, if that's the relevant entity), major financial or legal news outlets, or government or regulatory agency releases related to pension fund oversight in Bavaria or the USA.
Michael Shvo was reportedly warned in writing about his past by the BPK. The separation of Komenda from the authority, which is under the supervision of the Ministry of the Interior, occurred last week. Tenants have also taken legal action against these projects. The investigation's timeline, current status, and potential legal consequences remain unclear at this time.
The ongoing investigation by the Munich Public Prosecutor's Office is focused on allegations of criminal activity in the Bavarian Pension Fund's (BPK) investments in US real estate, particularly in education-and-self-development, general-news, and finance sectors. The BPK has been under scrutiny for investing hundreds of millions of euros in luxury buildings since 2018, with tenants claiming dilapidated conditions in some properties, including those developed by convicted tax evader Michael Shvo, who the BPK invested in.
