The Storming of the Companies

on the 31st January 1980

What happened when Bagmandspolitiet stormed my companies’ offices on open television and carried out boxes of precious metal and gold coins, paintings and various art objects together with boxes of documents?

Despite that the Danish press cannot be blamed for objectivity, the articles on the 1st February 1980 (the next day) did show good journalism, but more importantly the real intention of the Danish authorities at the time since all the states to the media came from the Special Prosecution’s (Bagmandspolitiet) office.

Since the media coverage played a central part in everything in which the authorities had planned, I will deal with each main newspaper article that was published in the days after my arrest and the closing of the companies.

At the time of writing, I do not have all the articles in hand, but as I receive them, I will go through each article later on and add my comments.

Børsen, Friday the 1st February 1980 (see the article in Danish: 1st February 1980 Bagmandspolitiet lukker SCE )

The biggest Danish Financial Newspaper at the time.

The Special Prosecution closes Scandinavian Capital Exchange

Making charges for serious tax evasion against Denmark’s largest bullion dealer

Back page Heading: Precious metal dealer accused of tax evasion

Police close Scandinavian Capital Exchange

Scandinavian Capital Exchange has been closed by Bagmandspolitiet.

The commodity trading company, with offices at Højbro Plads, is the largest bullion dealer in Denmark and has been subject to observation through the recent months. Yesterday Bagmandspolitiet, with a court order, granted permission to search through the business and offices and at the employee’s private addresses. At the same time, a person has been arrested, who today will be presented to the Copenhagen City Court. The police will not confirm if it is the owner and director of the company Mogens Hauschildt or another person. “We have taken this stand from Bagmandspolitiet (the Special Prosecution for Economic Crimes) that we do not wish to mention names since we do not know if the court wants to protect the name of the person”, says criminal commissioner Mogens Kanding, who is department chief in Bagmandspolitiet.

Through channels which we control we have found out that possible serious tax evasion has taken place, according to the criminal code paragraph 289 tells Mogens Kanding Børsen.”

Some seized material has been taken by Bagmandspolitiet; in the meantime, we continue to investigate in the company’s offices.

“We will go through all the material and especially concentrate on the companies order confirmations/dealings with its clients since we wish to double control on these client’s tax returns. At the same time we want to concentrate to see if there has been any wrongdoing by the company, as an example if we suspect any fraud against the clients, we will contact these clients and ask for their version.”

“Bagmandspolitiets action against Scandinavian Capital Exchange comes as a culmination of the greatest “gold rush” in Denmark.

When Scandinavian Capital Exchange started its business in the spring of 1974, investing in precious metal was practically unknown (in Denmark).

Today we will conservatively estimate that at least 10,000 Danes have, in procession, a larger or smaller amount of investment silver, Kruger Rand and platinum bars. It is still unknown if Scandinavian Capital Exchange will be opened again today…Therefore nothing can be said about the situation as to the many clients that have used the company’s so-called “deferred purchase agreement”. A form of margin speculation..”.

In reading the whole article, the reader must get the impression that the Special Prosecution was on a “fishing expedition” and that serious tax evasion must have been committed and that the fiscal authorities wanted to see investors’ tax returns and that the only way to do it was by closing the companies and later making out that I was responsible for the investors losses.

Note the fact that Kanding tells the newspaper that Bagmandspolitiet would contact the companies’ clients and ask for their version – of what? This being done after the closing of the companies giving some of these client losses – what should client say?

Jyllands-Posten, Friday the 1st February 1980 (see the article:

1st Febr. 1980 ) 

Heading front page: Danish company accused of fraud with precious metal

One of Denmark’s leading bullion dealers, director Mogens Hauschildt of Scandinavian Capital Exchange, was yesterday arrested and accused of tax evasion.’

He will today be present in court… Criminal commissioner Mogens Kanding Bagmandspolitiet tells Jyllands-Posten:

We have been investigating the company since it started (1974) just to see what is happening. Approximately three weeks ago our investigation became more intensive on our own initiative. We have not received any complaints

Tax evasion: Jyllands-Posten: Is it only a question of tax evasion? Yes, at this time Jyllands-Posten: How big amount is in question? This we can’t inform you about.

Mogens Hauschildt was the pioneer of investing in precious metals. Scandinavian Capital Exchange started in 1975. The company is owned by Capital Associates AG in Zurich and Hauschildt owns all the shares in the mother company. It is not legal to sell gold bars in Denmark.

The turnover is large and in busy periods easily several hundred million Kroner can be earned in a few weeks. The profits are very large.  …

More than ten thousand Danes have invested in gold, silver and platinum; it is considered an attractive investment with “black” money. It is also the possibility of getting a tax free profit when the price goes up (out of reach from the fiscal authorities). Scandinavian Capital Exchange also sells terminal contracts on margin and this has not suited the National bank. Concerned According to Ritzaus Bureau, lawyers in the National Bank foreign exchange department have been concerned about this terminal trading; there has been a character of passive capital investment abroad…

Reading this article gives a new dimension to Børsen’s article above.

First, there has been a fraud with precious metals?

Secondly, Jyllands-Posten has been given my name.

Thirdly, Bagmandspolitiet has been investigating the company for more than five years just to see what?

Just like Stasi or KGB. As Stalin said, “Show me a person and I will always find a reason against him” (to kill him or send him to the Gulag). In the companies, we knew that the Danish the authorities had been harassing us constantly for years, but we did not know that Bagmandspolitiet was involved,  see: Five Years of Continuous Harassments Before the Event.

No complaint had been made to the police and the Special Prosecution (Bagmandspolitiet). The Special Prosecution decided themselves to take the action.

Further, that black money was invested in precious metals and the profits were tax-free outside the reach of the fiscal authorities, this could NOT BE TOLERATED.

Politiken, Friday the 1st February 1980 (see the article in Danish: 1st February 1980 Politiken )

Front-page heading: Gold dealer arrested for millions – fraud

“Yesterday Bagmandspolitiet attacked one of Denmark’s largest dealers of gold, silver and other precious metals, Scandinavian Capital Exchange, in Copenhagen. The police seized a large amount of account material and arrested the company’s director. He has been accused of tax evasion of a serious kind according to the criminal code paragraph 289, which has maximum imprisonment of four years.

After what Politiken has found out, it is a question of tax evasion amounting to millions

The arrest yesterday has nothing to do with the National Bank’s complaints according to Prosecutor Finn Meilby (head of Bagmandspolitiet). Bagmandspolitiet have, for various reasons, felt inclined to investigate Scandinavian Capital Exchange business closely and compare information from tax authorities and the customs and excise office and have, through this, found a reason to charge for tax evasion… We found material there to confirm our existing knowledge about the company. We have investigated the case for about a month and the reason is that huge speculation in precious metals brought our attention to this and other companies have told criminal commissioner Mogens Kanding… I will not say that we closed the business with our action, but the company cannot pay out money nor receive money”

Reading this article one gets another story: According to the chief of the Special Prosecution (Bagmandspolitiet) Finn Meilby, Bagmandspolitiet have, for various reasons, felt inclined to investigate Scandinavian Capital Exchange business closely and compare information from tax authorities and the customs and excise office and have, through this, found reason to charge for tax evasion.

I was never charged with tax evasion since this was a trumped-up charge and there truly was no tax evasion by me or the companies. Interestingly, Mogens Kanding told this newspaper (Politiken) that Bagmandspolitiet has only been investigating the company for a month, not five to six years as he told Jyllands-Posten.

BT, Friday the 1st February 1980 (see the article in Danish: 1st February 1980 )


The police left with gold and silver worth millions A Danish company’s (SCE) large million profits on speculation on gold and other precious metals have escaped taxation.

After telling the readers about the razzia and seizure of valuables together with documentation. A reference is made to a statement from Finn Meilby as to a large amount of money: “It is our impression that the money has been taken out of the country”. The article goes on to mention that I have also been charged with exchange control violation.

The reader is also told that Finn Meilby attended an international police congress in Paris a month earlier, where Interpol warned against the rising crime in precious metals and commodities. This resulted in that Bagmandspolitiet started to examine the Danish market. With the help of the customs and excise office, the tax authorities and an auditing firm, they started to go through SCE’s accounts.

Finn Meilby states further on in the article: That the arrest of Mogens Hauschildt only concerns the alleged tax evasions” In reading this article, a reference to Finn Meilby attending a conference in Paris is made for the first time, also that Bagmandspolitiet had employed an outside auditing firm.

The fact is that Bagmandspolitiet closed a company, seized all the valuables and assets for open television for all to see because they had “an impression that money had been taken out of the country” – only an impression? I was never charged with such an offence.

During the period 1974-1980, SCE collected many headlines and press coverage mostly in the financial media. (see SCE Presse omtale 1976-1979)

SCE’s mission was to educate the Scandinavian investor since they had been isolated from the international world of finance. SCE pioneered many forms of investments including investing in precious metals (gold, platinum, palladium, rhodium and silver).

Therefore, the company instigated a lot of info-media coverage, held regular seminars and published material aimed to educate the investor. This activity was a central part of the companies operation and really a pre-requisite to developing a proper clientele and market activity.

Politiken, Saturday the 2nd February 1980 (see the article in Danish: POLITIKEN 2nd February 1980)

Front-page headlines:

Gold dealer ready to escape – Bagmandspolitiet counted on the fact that the top director from the bullion dealers, Scandinavian Capital Exchange, was attempting to escape abroad just when he was arrested on Thursday.

The director is accused by Bagmandspolitiet of serious tax evasion, and together with his co-director, was also yesterday accused of fraud in connection with the sale of silver, gold and platinum.

The clients who are supposed to be defrauded have only had a receipt for the precious metal, which should be in the company’s vault. Only a very small amount of the precious metal should exist In carrying out the search warrant on Thursday in the companies’ offices on Højbro Plads, the police only found a few million in cash in the bank and some precious metals, despite the company having had a turnover of approximately 500 million Kroner in silver, gold and other precious metal. The majority of the company’s clients should expect to have a big economic hit, tells criminal commissioner Mogens Kanding from Bagmandspolitiet.

The criminal commissioner informed further that the top director had just made plans to leave Denmark” On page six the article continues: Gold treasurer to foreign country Criminal Commissioner Mogens Kanding from Bagmandspolitiet, informed Politiken yesterday:

 “That a major part of the profit from the Danish company, which had a turnover of half a billion Kroner (500 million) apparently has been transferred to post-box companies in Switzerland. After the carrying out of the search, we have been able to confirm that large amounts have been sent to companies in Switzerland and there is often only a lawyer’s office there where the money is then hidden from the police”

After the police, tax authorities and the customs and excise office’s investigation, it does look like the company in Denmark have earned large amounts on the Swiss addresses. The money should have been obtained by fraud with bearer deposit receipts of precious metals. In reading this article two days after the event, a Saturday (so all the investors and clients had the whole weekend of anxiety and worry), one can only believe that I had planned on escaping abroad and that the company had a turnover of 500 million Kroner and no money had really been found, also that the Swiss companies had issued fraudulent bearer deposit receipts.

None of it was the truth

In January 1980, I had been in Switzerland three times: once with my family (New Year) and later twice with my wife; in fact, I returned from a weekend in Switzerland two days before my arrest. I had been in Germany and twice had been in Holland working in my company’s offices in Rotterdam, (International Resources). Not to mention twice at my companies offices in Sweden and a planned office in Stockholm. In other words, if I planned to leave Denmark, I had ample opportunity.


As of running away or just escaping  – all of this was a direct lie in order to get the public, and later the judges, to believe that I was running away from Denmark because I had done something wrong.

No “bearer” deposit receipt for precious metals has never been issued by the Swiss companies and the companies were never subjected to any charges by the prosecution in Denmark or anywhere else.

No doubt that the company could have had a turnover of half a billion or billions if the Danish authorities had not closed the company, however, 500 million Kroner was just a lie since the tax authorities received a reporting on our turnover every month – they should know that it was 50 million Kroner, not 500 million.

What is interesting are the various reasons for my arrest given by different people from the Bagmandspolitiet (the Special Prosecutors office).

Finn Meilby’s version: To set out a totally controlled case (ideal material), which Bagmandspolitiet could control from the first moment just like a stage set at the Royal Theatre, closing the companies on open television and making my arrest, and later feeding the media with stories, painting a criminal profile of me and the activities of the companies, knowing very well that this would always stay in the public mind; thereby controlling the public mind and everything via the Ministry, the courts and judges.

Mogens Kanding’s version: That the Danish authorities, having investigated the companies for more than five years, using the Special Prosecution as henchmen just wanted my companies closed at all costs. When their agent provocateurs did not work and the tax authorities could not find anything wrong and worse than no client from the companies would make any complaints – Bagmandspolitiet just had to make their case for open TV to create maximum exposure, fear and anxiety among the companies clients – all the rest would follow. They knew that you can’t get it back out of the public mind.

Aktuelt, Saturday 2nd February 1980 (see the article in Danish: Aktuelt – 2 February 1980 )


The greatest fraud case to date in Denmark Milliard (billion) fraud with silver which does not exist charges of fraud up to a billion Kroner awaits the director Mogens Hauschildt of Scandinavian Capital Exchange.

With such headlines, the readers could not be left in doubt. The newspaper was indirectly owned by the ruling Social Democratic Party and Danish trade unions that sensationalised the arrest and the court hearing, including the closing of the companies. It also informs the reader that half of a hundred concerned investors had contacted Bagmandspolitiet (Special Prosecution), after seeing the closing of the companies and my arrest on television.

After such headlines and television programs, the Special Prosecution had no way back; to make matters worse, the image of me and my companies were ruined and this could never be taken back from the public mind.

According to our (Aktuelt) information, it is most likely that the charges of serious tax evasion will be dropped (they should know as they were owned by the Socialist). In other words, the charges of alleged tax evasion were just used to get a warrant issued, one day after my arrest and the closing of the companies they knew there was no tax evasion.

The newspaper coverage of the event on Friday, Saturday and Sunday were huge and most pre-judicial. Denmark is a small place and such great amount of press coverage both in the national and local press did considerable and irrevocable harm to the case.

Bagmandspolitiet had unscrupulously used the most important weapon to smear, discredit and disgrace my person – the media. Thereafter, there was no way back moreover, the public would never “take back” what they had witnessed on the television and newspapers.

Although the national newspaper’s headlines, followed by the many local newspapers, made an impact on the nation the first few days after my arrest and the closing of the companies, by far the most pre-judicial and crucial coverage for the whole case, came from the Danish state-owned television.

Denmark had, at the time, only one TV station which was owned by the state, Danmarks Radio & TV. The Special Prosecution had informed the television station the day before I was to be arrested so that a camera team could film the storming and closing of the companies. Journalists from the television station tried hard to contact me in order that I could also be arrested on the open screen (see later under “Trial by the media”). At the time, most Danes’ would be glued to the front of their television for the regular evening news at 19.30 (TV-Avisen).

On the evening of the 31st of January 1980, the whole of Denmark saw that Bagmandspolitiet closed Scandinavian Capital Exchange and they heard that two directors had been arrested. The television viewers could watch Bagmandspolitiet carrying out boxes of documents, valued paintings and antiques from the offices of the companies. In other words, Bagmandspolitiet acted as the instigators, prosecutor and judge; the case was concluded the first day – GUILTY. 

“The Danish National Bank, the Ministry of Trade, the Company Register and Copenhagen tax authorities all conspired against Hauschildt and the companies whilst using the involvement of the Ministry of Justice, the Special Prosecution and the court as henchmen”


Advocate Folmer Reindel to the City Court and 8 years later to the full Court with 17  judges from the 17 member countries of the Court of Human Rights in Strasbourg

I had previously worked with the two journalists from Danmarks Radio, who made the filming of the event. Both journalists had an established reputation and we’re known as “good” Social Democrats. Apart from working for the Danish state television, they worked for Aktuelt newspaper, also associated with the ruling Social Democratic Party. Both became editors in charge of the newspaper some years later.

Within a week of my arrest and the closing of SCE, these two journalists presented the final nail in my coffin by showing a forty-minute (at prime time, 20.00), television programme where they involved some SCE clients who had become very anxious and worried after seeing the companies being closed by Bagmandspolitiet.

This very subjective television programme, which was repeated a few days later, did indeed seal mine and my companies’ future.

I do not blame the journalists; after all, they received a good story on a silver platter and did their job. Nevertheless, they were part of a conspiracy against me and the companies.

Their forty-minute programme also fanned the flames of anxiety for the companies’ clients and somewhat also encouraged them to come forward and claim that they had been “defrauded” since they expected a better position when claiming this. Neither I nor any senior employees from the companies were able to comment on all the various allegations raised in the television programme.

Interestingly, more than eight years later on the 26th September 1988, the European Court of Human Rights held an open court hearing on my case in front of the full court of 17 judges from 17 countries. The German, French, Belgian and Dutch television stations were there, but not the Danish State Television, which had been used by the Danish authorities to create a trial by the media.  

The Conspiracy

When Anker Jørgensen died in 2016, many articles in the Danish press mentioned the truth about this not very bright Danish Prime minister for two periods. He was responsible for Denmark’s devastating immigration policy and the enormous financial deficit. What is more, he admired North Korea and its despot Kim Il Sung (see Berlingske Tidende 16 May 1984).   

My defence lawyer Folmer Reindel was contacted by a well placed senior servant who attended a Cabinet meeting at Christiansborg in late Autumn 1979, where the prime minister Anker Jørgensen proposed that Scandinavian Capital Exchange and I would be the solutions to all Bagmandspolitiet's problems and bad publicity. I was a capitalist pig and the ideal candidate for the socialist.

This is the Danish Prime minister who praised the dictator of North Korea in 1984 as a brilliant leader. “Kim il-Sung, as a leader, should be admired for his devotion and wonderful work for his country and his people’s freedom and happiness. Moreover that North Korea was a wonderful country and the people should be proud of their country’s independence from the influence of the big countries.” Anker Jørgensen was even so stupid to draw parallels with Denmark fighting against the German occupation during the Second World War (which very few did when the truth is known). 

How could anyone admire and glorify the totalitarian regime in North Korea – the Danish Prime minister Anker Jørgensen and the deputy chief of Copenhagen fiscal authority Christen Amby could! (see Berlingske Tidende 16 May 1984).

The companies were subject to many visits by the Copenhagen Tax office, including by the deputy chief of this office Christen Amby. 

Picture of Christen Amby 1978 - Danish Red Communist - Danish Injustice - Christen Amby was arrested back in 1969 together Otto Sand-Danish Injustice-Hauschildt demand millions in compensation

Christen Amby, the person who my companies and I was harassed by through several years, was none other than “a red socialist” or should I say a left-wing socialist and the founder of the Danish Friendship Association with North Korea.

One time leaving my office, Christian Amby said: We will close this capitalist cave (Vi vil skal nok få lukket den kapitalist hule). Considering, that we operated according to the laws and everything was correct within our business, I found such outrageous statement, as wishful thinking from his side. Little did I know about the socialist's power and determination.

His real objective was for us to give him names of our client who traded “over the counter” all suspected to used “black money” undeclared to the fiscal authorities. Since there was no legal requirement for this at the time, I refused to corporate. Many times when leaving our offices, he mumbled: “We will see about this".

Interestingly Christen Amby was arrested back in 1969 together Otto Sand (an agent for DDR’s Stasi) as they were organising to send money to support North Vietnam fighting the American Imperialist

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Lies, Lies and More Lies

Pin It on Pinterest

Share This