Radovan Vítek

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Radovan Vítek
Born1970/1971 (age 47–48)[1]
ResidenceCrans Montana, Switzerland
NationalityCzech
Alma materUniversity of West Bohemia
Known forMajority shareholder CPI Property Group
Net worthUS$3.5 billion (March 2019)[1]
Spouse(s)married
Children4

Radovan Vítek (born 1970/71) is a Czech billionaire real estate developer, and majority shareholder in CPI Property Group, now merged with ORCO Property Group S.A., through a hostile takeover.

Career[edit]

Radovan Vítek started his property career in Slovakia 1990's voucher privatization, before moving to the Czech Republic in 1997.[1] Vítek is the majority owner of CPI Property Group, now merged with Orco, after a hostile takeover.[1][2]

As of March 2019, Forbes estimated his net worth at US$2.5 billion.[1]

Vitek is the owner of the Swiss ski resort in Crans Montana. During the 2018 ski season, CMA closed the ski-lifts without warning because the town council would not pay 800,000 Swiss Francs (around $799,000) to CMA for the cost of late-season opening and for running World Cup races.[3] CMA said it did this with the resort's financial interest in mind. The three surrounding towns said the CMA harmed not only the resort's financial interest but also its image,[4] and raised questions about the motivations behind their decision.

Controversies[edit]

Fined by the Luxembourg Regulator[edit]

Vitek is a shareholder in a company called Orco Property Group S.A. At the end of 2017, Vitek was fined by the Luxembourg regulator CSSF as a shareholder in the Orco Property Group S.A. The Commission de Surveillance du Secteur Financier (CSSF) held an investigation against Vitek and sanctioned him as the ultimate and indirect controlling shareholder of Orco Property Group S.A. for market manipulation in relation to the shares of the Issuer as per the provisions of the Market Abuse Law.[5]

Lawsuit in New York, US[edit]

In April 2019, Vitek faced a $3 billion racketeering lawsuit in a New York court. Investors claimed he carried out an elaborate fraud to strip valuable assets from companies he secretly controlled. The plaintiffs are seeking damages under the Racketeer Influenced and Corrupt Organizations Act (RICO), a federal law used to combat organised crime that can also be applied in business disputes . The plaintiffs accused Vitek of engaging in a racketeering scheme spanning a decade. They claim Vítek used a web of shell companies and “straw owners” to gain control of a Luxembourg-based real estate development company in which he held a substantial interest. He then sold the most valuable assets at “distressed prices” to entities he secretly controlled.[6]

Investigation into financial deals, Switzerland[edit]

Since 2019, Swiss prosecutors are investigating a number of financing deals at the Crans Montana Ski resort owned by Vitek. Prosecutors are focusing their investigation on a capital raising by Remontees Mecaniques Crans-Montana Aminona SA (CMA) that took place in 2016 and how the funds were used to augment its stake in a related property company.[7]

Personal life[edit]

Vítek is married, with four children, and lives in Prague.[1] In May 2015, he bought Rydinghurst,[8] a 17th-century house and 200-acre estate in Surrey, England from British rock star Ringo Starr for £13.5 million, so that his children can be educated in England.[1][9]

References[edit]

  1. ^ a b c d e f g "Radovan Vítek". Forbes. Retrieved 1 March 2019.
  2. ^ "Executive Profile Radovan Vítek". bloomberg. July 9, 2019. Archived from the original on January 7, 2019. Retrieved July 9, 2019.
  3. ^ swissinfo.ch, S. W. I.; Corporation, a branch of the Swiss Broadcasting. "Swiss Probe Billionaire's Ski Resort After Hedge Fund Sues". SWI swissinfo.ch. Retrieved 2019-06-29.
  4. ^ "Bond's Favorite Swiss Ski Resort Loses License to Thrill". www.bloomberg.com. April 5, 2018. Archived from the original on April 5, 2018. Retrieved April 5, 2018.
  5. ^ Kirilova, Valentina (2017-12-11). "Luxembourg regulator CSSF fines shareholder of Orco Property Group S.A." LeapRate. Retrieved 2019-06-29.
  6. ^ "Czech Billionaire Accused of $1 Billion Fraud by New York Hedge Fund". www.bloomberg.com. April 10, 2019. Archived from the original on April 11, 2019. Retrieved April 11, 2019.
  7. ^ "Swiss Probe Billionaire's Ski Resort After Hedge Fund Sues". www.bloomberg.com. April 16, 2019. Archived from the original on April 16, 2019. Retrieved April 16, 2019.
  8. ^ "Ringo Starr Sold his British Manor to Czech Real Estate Tycoon". Forbes (in Czech). 2015-01-31. Retrieved 2019-06-29.
  9. ^ Griffiths, Charlotte (3 May 2015). "Ex-Beatle Ringo Starr sells his £13million Surrey pad to Czech billionaire". The Daily Mail. Retrieved 12 November 2015.