Schmid has home searched

17 Jan 2003

Gerhardt Schmid, the founder and largest shareholder of troubled German telco MobilCom, has had his home searched as part of an investigation into his alleged embezzlement. Mr Schmid was sacked as CEO of the company after it emerged MobilCom has paid a EUR71 million fee to a company controlled by his wife for providing shares for an employee incentive programme. A independent audit found Schmid failed to inform his CFO about the transaction, acted without due care and overpaid for the stock. Mr Schmid has denied any impropriety.