H&K being sued for fraud

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We now know why H&K guns are so expensive! It is because mansions, aircraft and yachts are so damned expensive!

US Hedge fund investors allege that Heckler & Koch Beteilungs GMBH (not to be confused with its US subsidiary H&K USA) majority owner Andreas Heeschen used part of a 100 million euro loan that the company took out to purchase 40 million euros worth of property, 12 million euros worth of aircraft and a 12.5 million euro yacht!

The lawsuit was filed in New York State. Heeschen denies the allegations.

[ Many thanks to Carl for emailing me info on this topic. ]




Steve Johnson

Founder and Dictator-In-Chief of TFB. A passionate gun owner, a shooting enthusiast and totally tacti-uncool. Favorite first date location: any gun range. Steve can be contacted here.


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  • Clodboy

    In Federal Republic of Germany, hedge funds *you*!
    :D

    • http://www.thefirearmblog.com Steve

      Clodboy, RRROOOFFFFLLL, quote of the day!!!

  • http://[email protected] sumyunguy

    a loan to the company or from?

  • Mu

    Reading the German original, the whole thing seems a bit less clear cut. The hedge funds backed a Merryll Lynch loan that has rather odd conditions being of the no payments till due date kind. The loan is not due until 2013. To get the money back early, the hedge funds allege that some of the money was rerouted to the owner of HK for private stuff, in violation of the contract. The owner in turn alleges the hedge funds are short on cash and want to back out of the deal to fix their books, and that all his purchases were made from his private fortune, and pointing out that H&K is highly profitable at the moment.

  • Royi

    And here I tought HK was something like Apple… Very sophisticated products, but 80% of the price goes into that Apple/HK logo that’s stamped on it.

  • Lance

    Not surprised the owner of H&K is such a jerk look how he went after the owners of GSG-5 and forced them to stop makeing them. I do wonder wil tis hurt the H&K 416 rifle in the M-4 upgrade compation.

  • jdun1911

    If HK is profitable then why asked for a large loan? 100 millions is a lot of money and the interest will cut deep into the profit of such a mid-size company.

    Keep in mind that HK have sold at least one part of it business to raise money in the last 10 years. Also in the last 20 years or so it went bankrupted twice. In other words it is not a well run company.

  • Woody

    That explains H&K for what it really is: a war profiteering, elitist, pseudo-luxury company that only cares about military contracts and ripping people off. No thank you, Ill stick to what I have been doing my whole life: buy American.

  • G. Bush

    ^ Yes, because there’s no war-profiteering going on in any American companies. Oh, wait, except for 99% of them. Gimmie a break!

  • Woody

    G.bush, there is a difference between small, independent small arms companies and large defense contractors. Huge difference between Kimber and Colt or General Dynamics.

  • Texas
  • http://www.thefirearmblog.com Steve

    Texas, well done finding that!

  • http://www.americantactical.us Chris at ATI

    all I can do is smile.

    • http://www.thefirearmblog.com Steve

      Chris, LOL, I don’t blame you !

  • Darwin

    “Royion
    And here I tought HK was something like Apple… Very sophisticated products, but 80% of the price goes into that Apple/HK logo that’s stamped on it.”

    Which tells me you nothing about either HK’s or Apple products.

  • Will

    “Also in the last 20 years or so it went bankrupted twice. In other words it is not a well run company.”

    Talk to any of the HK master importers (3) here, and that would seem to be an accurate judgement. They act like they really don’t want to sell anything to Americans. That company needs an attitude adjustment big time.

  • Clodboy

    “Keep in mind that HK have sold at least one part of it business to raise money in the last 10 years. Also in the last 20 years or so it went bankrupted twice. In other words it is not a well run company.”

    Still, HK products currently seem to be selling like hotcakes – the 416 has been adopted by Turkey and Norway (and recently in limited numbers by the US), Spain, Latvia and Lithuania (not to mention the Bundeswehr) have adopted the G36, the MG43 has also been adopted by the Germans and Spanish, and the MP7 also seems to have been moderately succesful as far as PDWs go.

    This is a far cry from the early 90s, when the G11 and the G41 spectacularly bombed and their steadiest customer, the Federal Republic of Germany, had to funnel all their money into propping up East Germany after the reunification.

  • AK™

    So…are you saying H und K are a bunch of thieving Nazis?..what is this then? 1930s?

    Makes sense..I mean how’s that “hope and change” BHO promised working out?

  • Hector Kim

    Nice article and abstracts on the lawsuit on this website:

    http://www.shutdownhk.org.uk/heckler-koch-shareholders-sued-by-investors/#more-175