Police investigations at Pixelnet

On December 5, 2002, German police forces searched more than 40 residential and business buildings in six German federal states. Matthias Sawatzky, the founder of Pixelnet and previous Chairman of the Board, was arrested and imprisoned on remand. According to a press release from the public prosecutor of Landshut, Bavaria, Germany, he will be charged with tampering with Pixelnet AG‘s balance sheet and using faked sales figures before the company’s going public. In June 2000, Pixelnet AG succeeded in raising approximately Euro 46 million on the German stock market, issuing 3.3 million shares at Euro 14 per share, based on what the German authorities consider to be faked figures. Police authorities are also investigating 20 other individuals, suspecting fraud and tax evasion.

According to PMA European Newsline, Sawatzky was released on remand on January 17, 2003. He was arrested on December 5, 2002, after the judge at the Landshut District Court found that there was not enough evidence that the claimed manipulations have actually influenced Pixelnet‘s stock market ratings. Investigations against the Pixelnet founders and the other suspects, however, are being continued.