After a legal tug-of-war spanning almost a decade, the Republic of Austria has reimbursed FACC AG, a major Austrian aerospace supplier, an amount of 10,8 million euros.
This sum was seized in 2016 as a result of the so-called "Fake President Incident" in China, in which the company fell victim to a sophisticated fraud at the end of 2015. The successful return of the funds marks the provisional end of a complex and lengthy process that required close cooperation between Austrian and Chinese authorities as well as extensive legal steps in Austria.
The fraud case that rocked FACC in late 2015 originated through fraudulent schemes known in the industry as the "Fake President Scam." Unknown perpetrators impersonated high-ranking company executives and tricked senior executives into transferring large sums of money to foreign accounts. This type of fraud often targets the authority and perceived urgency of instructions from high-ranking executives to induce employees to act carelessly.
Thanks to FACC's rapid response and the immediate involvement of the authorities, the Chinese and Austrian investigative authorities, through remarkable cooperation, succeeded in freezing part of the stolen sum of EUR 2016 million in accounts in China as early as the beginning of 10,8. This success underscores the importance of international cooperation in the fight against cross-border economic crime.
In 2019, the seized funds were transferred to the Vienna Higher Regional Court, where they were taken into custody. In the following years, the case underwent extensive legal reviews and proceedings before the Austrian courts. The complexity of the facts, the need for international legal assistance, and the need to ensure legal ownership contributed to the considerable length of the proceedings.
At the end of March 2025, the depositary of the Vienna Higher Regional Court was finally able to return the €10,8 million to FACC. The company welcomed this step with satisfaction. FACC CEO Robert Machtlinger expressly thanked all authorities involved for their "constructive cooperation over the past few years" and emphasized that the return of the funds brought an end to "a long-standing legal chapter."
Although the repayment of the funds increases FACC's liquidity, according to the company, it will not be recognized in profit or loss, as the frozen funds had already been recorded as receivables in the company's books. This means that the company's operating profit or loss will not be directly affected by this transaction.
The total duration of the proceedings, approximately nine years, highlights the challenges associated with the investigation and return of funds from international fraud cases. In addition to the necessary coordination between various national authorities, the different legal systems and the associated legal investigations also play a significant role and can significantly extend the duration of the proceedings.
The "Fake President Incident" at FACC is one of a series of similar fraud cases that have affected companies of varying sizes around the world in recent years. These incidents underscore the need for increased vigilance and robust internal control mechanisms within companies to protect themselves against such criminal activities. However, the successful return of part of the stolen funds in the FACC case can be viewed as a positive signal in the fight against white-collar crime and demonstrates that the prosecution and punishment of such crimes is possible even across national borders.
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