BERLIN,GERMANY - EQS Newswire - 23 September 2019 - The financiallytroubled Berlin jewelry group elumeo SE may face back tax claims totaling 17million Euros. This assessment is the result of an expert opinion commissionedby Ottoman Strategy Holdings (OSH). The expert opinion is based on existingcontracts between elumeo SE and its subsidiaries as well as on the tax holidayconditions, according with the Board of Investment, in Thailand. According tothese agreements, the German tax authorities are likely to make additionalclaims for alleged profits of EUR 10 million, while the Thai government islikely to make a further 7 million Euro for unfulfillment of the conditions ofthe tax holiday granted to the Thai elumeo subsidiary PWK Juwellery Limited.

More than 600 workers of the Thai jewelry manufacturer PWK Jewelry Limited became unemployed after the German jewelry retailer elumeo SE ordered jewelry worth more than 30 million euros through its subsidiaries, but paid only a fraction of it. The PWK became illiquid and could no longer pay the salaries of their workers or the severance pay to which they are legally entitled. Before that the management of elumeo SE was exploring ways to fire the workers without having to pay them their severance pay. The workers demonstrated in Chantaburi and protested in front of the German embassy in Bangkok against the actions of the German managers of the listed company elumeo SE from Berlin. The public prosecutor's office in Berlin and the Thai police authorities are investigating the management of elumeo SE for fraud.

This tax assessment is devastating news for the shareholders FrankfurtPerformance Mangament AG (FPM) and Heliad Equity Partners and other elumeoshareholders, who have so far supported the Chairman of the Board of Directorsof elumeo SE, Wolfgang Boyé. During last extraordinary shareholders meeting ofelumeo, following the news of criminal investigations for fraud, in bothGermany and Thailand against Wolfgang Boyé and Executive Directors ThomasJarmuske and Bernd Fischer OSH requested the appointment of a special auditor.The task of a special auditor would have been to investigate the factors whichled to social distress at PWK in Thailand, caused by hundreds of workers beingdeprived of their legal severance pay and salaries. More than that OSHrequested the appointment of a special auditor to clarify the legality ofChariman Boye's actions and the general status of the company. However, inspite of the criminal investigations, lawsuits in range of tens of millions ofEuro against the company, Raik Hoffman, representative of FPM pledged his totaltrust and support in Boyé, voting against a perfectly normal, under thesecircumstances, special audit.

The expert opinion exposes a web of complicated price transfer mechanism,tax holidays, intermediary Hong Kong companies with no physical substance,unpaid invoices, breach of the "arm length" principles, revolvingloans to pay dividends that exists only on paper, unfulfilled contracts,subordinations of debts of tens of millions of EUR and setoff of dividends madeonly on paper.

The expert opinion indicates a strong likeness of major tax evasion underthe German § 370 AO, based on the existing Agreements between elumeo,Silverline Distribution Limited (Hong Kong intermediary company) and PWK inThailand, payments pattern and Chairman Wolfgang Boye's own statements duringthe shareholders meetings of elumeo. OSH will provide the expert opinion to thetax authorities in Germany and Thailand.

OSH will continue to pursue its legal ways of action in order to have aspecial auditor appointed by a German Court, in spite of Frankfurt PerformanceManagement's vote against the legal clarification that would be generated by aclear and full audit of this troubled company, which, under Wolfgang Boyé'sChairmanship lost more than 96% of its share price and became involved intomajor financial disputes and social unrest, affecting the life of hundreds ofpeople.

At this point, OSH, as the initial investor in elumeo SE, operator of JuweloTV, is greatly saddened by the fact that under the actual management and withthe support of other minor shareholders as Frankfurt Performance Management AG(FPM), the company is caught into a situation that could, very likely, lead toits insolvency, and continue to generate a grave wave of legal problems, bothcivil and criminal, as well as major tax issues.

Until now, with no proof but erratic explanations, Chairman Boyé, denied allthese allegations. However, OSH is rising a very simple and legitimatequestion, to the both, other shareholders and the market: "If suchillegalities-related conclusions are unfounded, why Chairman Boyé and hissupporters are fighting so hard against the appointment of a special auditor,which, in case that there were no illegalities committed, would just clear thecompany's and his own name?"

The issuer is solely responsible for the content of this announcement.