Businessman Fined €1 Million for Hiding Cash at Telekom Austria

Businessman Fined €1 Million for Hiding Cash at Telekom Austria

Peter Hochegger. Image: APA

 

A former Austrian businessman has been ordered to pay a fine of €1 million or face ten months in prison after being found guilty of assisting in hiding cash at Telekom Austria through secret funds.

The sentence was handed down at the Vienna Regional Court on Thursday.

Peter Hochegger admitted his guilt, with the court estimating the damages at €2.46 million.

The case, which has been ongoing for years, involves events dating back 15 to 20 years. During this time, Telekom Austria allegedly set aside off-the-books funds that went to Hochegger’s company, Valora, which used fake invoices for non-existent services. These funds were then allegedly used for illegal party financing, including for the People’s Party (ÖVP), as well as other unrecorded payments. Hochegger claimed he received €1 million annually from 2005 to 2008.

Co-defendant Rudolf Fischer, a former board member at Telekom Austria, was fully cleared of the charges against him.

The prosecutor had stated that both Fischer and Hochegger were responsible for ensuring the fake invoices were treated as legitimate. VAT deductions and expenses were claimed, resulting in tax reductions for sales, corporate, and capital gains taxes.

“I may have approved the tax returns,” Hochegger admitted during the trial, expressing that he was unaware of any wrongdoing at the time. He described Valora as a sort of “office” for Telekom, creating offers and invoices as required.

Since 2014, Telekom Austria has been a subsidiary of the Mexican telecommunications giant América Móvil, although the Austrian government retains a stake in the company.

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