The 250-Year-Old Bank That Crumbled: Regulatory Failures, Illegal Trading and a Web of Litigation

By a Fraud Alert News Correspondent

The collapse of the Von der Heydt Group in Luxembourg stands as a cautionary tale of how catastrophic regulatory failures, alleged illegal trading activities and a complex web of litigation combined to dismantle a financial network that had endured for two and a half centuries. At the centre of the scandal, court documents and regulatory findings suggest, was Michael Gollits, the chief executive whose trading strategies and subsequent actions are central to understanding the group's downfall.

What Went Wrong with Von der Heydt Luxembourg

Between 2017 and 2020, Von der Heydt entered a joint venture with the MultiBank Group, which invested more than €43 million, according to publicly available records. The partnership collapsed when it became apparent that Von der Heydt's trading activities, it is alleged, breached the European regulatory framework. These violations were confirmed by Luxembourg's financial regulator, the CSSF, in an October 2020 letter seen by this publication.

The CSSF identified twelve "severe deficiencies" in the group's fund operations. These ranged from an inability to provide auditors with sufficient documentation and problems with asset valuation to failures in anti-money laundering and counter-terrorism financing controls. The situation deteriorated to the point that KPMG resigned as the firm's auditor in the spring of 2020.

The group was also entangled in a separate criminal investigation. In 2018, German police raided offices in Berlin as part of an inquiry into an alleged Ponzi scheme. Stephan Blohm, then chief executive of VDH in Luxembourg, was implicated as a primary suspect and has faced criminal charges relating to allegations that approximately 3,000 investors were defrauded of nearly €300 million.

By early 2023, the German parent entity had surrendered its BaFin licence. Insolvency proceedings were opened against the main entity in October 2025. The entire network was ultimately dissolved, with a spokesperson confirming: "Von der Heydt doesn't exist anymore."

The Alleged Role of Michael Gollits

Michael Gollits, as chief executive of Von der Heydt AG, was directly responsible for the trading activities that, according to regulatory and court findings, brought down the group. The MultiBank Group's legal filings accuse Mr Gollits of using VDH clients' money to speculate on highly leveraged contracts for difference (CFDs) referencing precious metals — a practice, it is alleged, that was banned under EU law for certain types of investment funds.

To create an illusion of stability, it is further alleged, Mr Gollits concealed substantial trading losses from investors. He has also been accused in court documents of taking commissions for the VDH Group from his alleged illegal trading activities, which were paid out of clients' money he had invested — some of which, it is claimed, eventually circled back to him personally.

The BVI High Court later found, in civil proceedings, that Mr Gollits had told "untruths to the MultiBank Group about the illegal trading in the notes, deliberately lying about the illegality of the project."

The CSM Connection

Beyond the alleged trading violations, court documents reveal Mr Gollits's name appearing alongside those of Stewart Ford (of Keydata) and Colm Smith (of Lifemark), with the trio's initials forming "CSM" — the name of a competing entity alleged in legal pleadings to have been designed to divert funds from the joint venture. Further allegations contained in court filings include that Mr Gollits participated in paying a €7 million "bribe or inducement" to Colm Smith to cause him to renege on a settlement agreement. These allegations have not been proven in criminal proceedings.

The Aftermath

Following the collapse, Mr Gollits subsequently moved to a new role at Werte Invest in Cologne, continuing to manage his OVID fund. Sources say that as liquidator of the insolvent entity, his role in the network's final chapter remains under scrutiny.