Internet Tycoon Schmitz Arrested for Insider Trading
January 24, 2002
He was arrested at Munich Airport on suspicion of having engaged in insider trading. Schmitz, who was deported from Thailand following a request by the German embassy, is accused of insider trading in connection with an operation carried out last year by his venture capital firm Kimvestor AG to rescue the Dutch Internet company Letsbuyit.com.
He is accused of having made a personal profit of more than 1.1 million euros from the transaction. Schmitz was arrested by Thai police on Friday night at a Bangkok hotel.
He was confined until Monday, his birthday and the day on which he planned to commit suicide, according to his personal web site.
He is also wanted on investment fraud charges after posting false information about his company on the Internet in an effort to win customers. Schmitz was a colorful figure in the Internet world.
He started his career as a computer hacker, and turned his knowledge into money-making ventures. He once said he wanted to be the richest man in the world, but has since been declared bankrupt.