The Danish Population Was all Fooled by the Danish Authorities

When the Danish media reported of millions of losses, they did not refer to my losses or the companies loses as a result of my arrest and the Danish authorities’ action on the 31st January 1980 closing the companies. An action which entirely had political motives, apart from the trumped-up charge against me for “serious” tax evasion which had no foundation.

The Danish population was all fooled by the Danish authorities wish to cover up everything. The Government had succeeded in selling Bagmandspolitiet’s role and indeed found someone to be the lamb leads to slaughter.

Yes, the Danish population was fooled. In fact, when I on the 18th January 1980 received confirmation that the market was going to crash, I immediately ordered the transfer from Switzerland to London of nearly US$2 million to enter the market on the “short” side using the London Metal Exchange.

I made detailed plans to sell more than 40 contracts “going short” on any rebound of the silver price. Prices do not just fall or go up, they regularly have a “technical reaction” to these moves and consolidate their moves before moving on. When this happened I was ready to sell into the market. I spend many hours every day studying the price movement and made various technical charts apart from the charts which had been made by my staff.  I was originally involved in the late 1960s with what become later the Society of Technical Analysis (STA). I had, therefore, considerable experience as to the technical analysis of price movements.

We did not have any technology to produce these charts just in front of us. It took many man-hours every day to draw the various chart for various commodities and currencies. As a chartist, I could trace all the various technical reactions and where I would enter the market.

As I expected the precious metal price came off in the Far East following the US exchanges announcement on Friday (18th January). The gold and silver prices were marked down early in Europe in line with Hong Kong. Friday gold had traded at over US$ 740 a troy ounce and silver had reached nearly US$ 56 an ounce for March deliveries and $50 for cash. On the Monday and Tuesday, both metals were marked down, gold dropping to $590 at Tuesday’s close and silver swinging between $43 and $34 on the day.

SCE’s A/S average sale price on all the margin sales was above the equivalent to US$38 so we were making good money all the way down. Nevertheless, I wanted to take advantage of this “one in a lifetime opportunity” to make an additional US$50-100 million by selling into the market, on a sure trade. Therefore, I transferred the US$ 2 million to London from Switzerland. At the time of my arrest, this money was on 2 days call, which meant that I could get this money to the exchange at any time.

As I have reported other place on these web pages, I considered the crash in prices as a certainty, not a question of a hunch or speculation, no absolute certainty, as I looked at it.

Why, when only sellers can enter the market and liquidate contracts, the price will fall for sure. This applies for all kind of trading, not just the precious metals. With no buyers around prices will fall, sooner or later.

To go long in the market would cost a fortune because of the deposit requirements by the exchanges. So, in fact, to buy and go long was for all purposes not really possible, when you understand the market.

Just prior to Christmas I took profit in all the precious metal contracts which I was long, considering the market. Most professional view the market as somewhat overheated and expected a technical reaction downwards. Even the highly respected Green’s (Greens Commodity Market Report 19 December 1979) advised everyone to sell. They even predicted what I also was convinced of, that Comex would sooner or later make a ruling as to all the short position in the market, something which happened on the 17th January nearly a month later. In fact, quoting from Green’s as to their view on silver: ”The previously heralded squeeze in December did not materialize, but we are convinced that those short February delivery in Chicago and the March delivery on Comex will have great difficulty to extricate themselves from their positions. Probably the only salvation for the shorts lies in some kind of ruling by the Board of Governors of both exchanges forcing liquidation at a fixed price. (The Comex by-laws provide for such eventuality.)”

Now when most of these Governors are professional floor traders – all short thousands of contracts, they will first and foremost protect themselves, everyone knows the market should know that and no one should go long in the market with such a situation. Therefore, I did not buy silver from that time onwards since it would, in my opinion, be stupid.

OK, Afghanistan came over Christmas with the invasion by the Russians, but I still accessed the market on the short side, although it was difficult seeing the prices moving against me until the 17th January.

The good thing, most financial commentators did not have much knowledge about how the markets work back then. Even respected journalists still were recommending going long “buying” in the market and to my joy at the time; even the Danish financial press was full of “buy stories”.  Even Financial Times was bullish on gold (see: Financial Times 24th Jan 1980 ).

When journalists reached me for comments, I always made sure to refer to others views of the market, not my own views, as I did not want to be caught advising the public to buy, well knowing that the prices would crash. Moreover, I pointed out that anything could happen as to Afghanistan and in Iran; moreover, people should always buy gold for insurance against what may happen in the world. Even after my arrest and any professional would know that the market was crashing, Danish newspapers recommended buying gold. In fact a major Danish magazine BilledBladet published on the day of my arrest an article about my companies (see:  Det stiger og stiger ) Interestingly,  when the journalist came to make this article, I did not want to appear, because, I was convinced the market would crash, however, others in the company still believed in other so-called experts.

Now, some people reading these lines may think, he was a greedy bastard – yes, but I only wanted to make up for all the bad months in late 1979 where I had accepted losses, at least on paper. Some people will also criticize me morally, why I did not instruct my staff to call all our clients and tell them to liquidate their contracts as prices would fall. Such critic should see the film Margin Call, an entangling thriller involving the key players at an investment firm during one perilous 24-hour period in the early stages of the 2008 financial crisis. To me, it truly reflects the mentality of Wall Street and indeed it shows what happened when an investment bank is left with bad assets on its book. Many investment banks, including Goldman Sachs, sold the worthless paper to their clients.

Well, all our client had by their own free will went into their trades with the companies. We may have had some good salespeople, but people contacted us and we did not put a gun to their heads. We did not like any licenced bank or financial institution have an obligation to give our best and objective advice. As we have seen in the last years, banking is all about making money with other peoples.

Yes, I did what many successful businessmen have done, exploit the situation to maximum gains. For several months the year earlier I had to daily see the market working “against me” and now I found myself at the top of the mountain and could only get a good ride down. What I did not know Bagmandspolitiet was listening in to all my telephone call, where I stated that I was certain that all the prices will crash, making me and the companies a little fortune.

As my defence explained to the courts through the years, the serious tax allegation was entirely a drum-up allegation, we never did find out “what these charges entailed as I was never charged with tax evasion”.

In the days just following my arrest, the companies could still have been saved, by allowing me the freedom to transfer funds from abroad and what more, legally claim that the Danish authorities had sparked a paragraph in our business terms and condition, which more or less was a so-called “Force Majeure Clause”. This paragraph set out clearly that the companies would not be responsible for any actions by the government; we did have at the time concern that the Danish government could stop currency transaction if the international situation deteriorated, also we did have a long experience how the National Bank had been trying to pull the chair away under us.

Bagmandspolitiet knew I was “confident” of this clause in our standard business terms and conditions since in the days before my arrest I spoke to a lawyer on the telephone as to this specific clause including actions by other governments. Not that I expected anything as to Denmark but the world was in upheaval at the time with the Russian invasion of Afghanistan, the start of the Iran/Iraq conflict and so many other headlines which could affect deliveries and trading of commodities.

Bagmandspolitiet also knew from listening to the telephone conversation that we expected to make margin calls for millions at the end of the month (31st January). They had to act, otherwise later they had no chance to stop the companies and indeed me.

The most client who had been buying since December had lost considerable amounts as of the end of January, this required us to call for more money or liquidations of their contracts. The margin call would also have provided the companies with even more liquidity and profits from the liquidation of contracts as a result of the non-fulfilment of payments.

All this was never to be – I was arrested and the companies closed without any reference to Law and Justice.

A large number of clients in the companies was also fooled by the Danish authorities because they missed out on DKr. 14-18 million-plus which I offered a few days after my arrest to bring to Denmark. This money remained out of reach by the Danish authorities. The Danish authorities wanted to close down our business at all costs with total contempt to the laws and make me “example”.

M. Hauschildt et Cie Zurich

The company had been trading for more than six years at the time of the event in Denmark. Prior to moving to Denmark, I had established this “unlimited liability” company specifically with the intention that the company after trading 10 years would “more or less” get a bank licence in Zurich. Such a banking license alone was worth considerable goodwill value at the time, at least Sw.Fr. 10 million just to have the licence. It was a known fact that if you traded with unlimited liability for ten years you could expect to get a banking license. My partner in M. Hauschildt et Cie was Bryan Jeeves the  Honorary British Consul in Liechtenstein. See Brian Jeeves, CMG OBE 

Due to what had happened to me in Denmark, Bryan Jeeves went on and established what is today The Jeeves Group with offices around the world. The company is family-owned and the controlled group offering independent trustee, fiduciary and corporate services to private and corporate clients. The Jeeves Group also acts as a multi-family office for high net worth individuals. All such services were planned by M. Hauschildt et Cie, something, which I already had attempted with Associated Financial Planning in London in 1969, together with the Duke of St.Albans, Marquees of Reading, James Talbot and Euan Inchball.

M. Hauschildt et Cie traded with unlimited liability and I like its main partner responsible with all my assets for all the company’s dealing. This structure had been used for hundreds of years by the Merchant banks and Swiss private banks.

 

Just prior to the events in Denmark, I had for some time been negotiating to bring in some more partners to M. Hauschildt et Cie. On a visit to New York in 1979, I had found an American banker who wanted to join us in Europe. In addition, I had found a Swiss financial advisor who was working for one of the banks we worked within Switzerland. These two people I had several meetings with during January in Zurich, latest four days before my arrest.

We had been finalising the arrangement and plans for a private banking “boutique” in Zurich. One of the people was to bring considerable investment banking experience to the company working for a respected Swiss bank and the other a substantial amount of client from all over the world. Both people represented valuable resources for the company bringing tangible assets and development. Due to the events in Denmark, this did not transpire and everything was lost as to this important development.

As a result of the events in Denmark with my arrest, and the fact that my wife did not go to Switzerland (she had all the power of attorneys), my lawyers had to enact a protection of M. Hauschildt et Cie. Sadly this protection of the estate, something similar to a U.S. Chapter 11 protection, became a big problem creating huge losses. The appointment of trustees, who basically just put the money into their own accounts, charging regular fees in return for no work.

Worst the exchange of all liquid assets into Swiss Francs, at the most unfavourable time and rate. The deposits in London was earning up to 15% plus, more than US250,000 a year and after being exchanged to Swiss Francs earning no interest at all, or just less than 1%. Later the liquid assets were placed with Swiss Air, earning less than 0.5 % p.a. (without security), one of the trustees worked for Swiss Air, a company which was for years mismanaged and ultimately went bankrupt.

The various trustees and lawyers bleeding the assets of the company by charging large fees, despite there was nothing to do. The lawyers even started suing each other and charged for everything including and visits from the Danish liquidators and prosecution allowing them to take millions through the years.

So when the Danish tabloid was writing that I was earning millions every year from my pre-trial restrictive incarceration, that was also a blatant lie, in fact, I was losing money all the time.

Interestingly, it was the former prosecutor for Zurich who helped me. Hans Ulrich Hardmeier fought for years trying to get the company out of the “protection” and the greedy hands of several lawyers and auditors. He had total contempt for the Danish estates and the Danish government after how I was treated by Denmark. charging fees fighting each other, on my account.

Moreover, he had total contempt for the lawyers in Switzerland who took the opportunity to charge millions, in return for no work, as to the company under “protection”, something caused by the Danish liquidator’s greed.  The lawyers only took advantage of the fact that Denmark held me for all those years.

Hans Ulrich Hardmeier was one of the few lawyers I have met in my life who I consider as a decent person; yes to be a lawyer and decent human being is possible. Most lawyers are leeches and opportunist on human society and their client. I used to tell a joke: What has a lawyer and a human sperm in common? One in a million chances to become a human being!

First in 1990 was M. Hauschildt et Cie out of this stranglehold, solvent and indeed able to resume business. However, in 1990 I had lost all my goodwill, my mental strength, having been locked up for 1492 days, branded a criminal by the Danish tabloid and finish in financial services forever. Nevertheless, M. Hauschildt et Cie was there and solvent as it had always been, like its unlimited partner me, except been raided for millions by the lawyers.

Less than two years later, in September 1992, my son Hans Christian and I helped my son Mark Anthony and Lars Seier Christensen to start Midas, which become Saxo Bank. I had always seen the great opportunity in investment banking in Scandinavia, but I could not do anything, as my name had become criminalised by Bagmandspolitiet. 

Nevertheless, the little money left in Hauschildt et Cie kickstarted Saxo Bank. Even when I in the mid-1980s was offered to head the Society of Technical Analysts in London, an organisation I already attended in 1968-69, I had to decline, after helping to establish the society as a non-profit company in the late 1980s, today a highly respected City institution. They still use the logo I designed.

In the 1980s and 1990s as chairman of The Mayfair Society and The Mayfair Trust and head of the Residents’ Association of Mayfair, I was subject to blackmail, as to the event in Denmark. This ultimately meant that I had to step down, and later subject to a “payback” from powerful elements of the British establishment.

 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, the media and courts as henchmen”

                                          – Advocate Folmer Reindel to the City Court

 

How stupid as to all the above assumptions, even in Børsen newspaper, about M. Hauschildt et Cie.  They could just go to the Company Register in Zurich and see that Bryan Jeeves and I was they only two partners in the company. UniCapital had nothing to do with M. Hauschildt et Ce. I owned 100% UniCapital SA in Liechtenstein and had done for close to ten years at the time. Bagmandspolitiet knew all this, as I had papers in my office as to this, everything was “an open book” as I did nothing wrong and as to these companies had nothing to hide. 

It is interesting in the above newspaper article that Judge Claus Larsen refused to accept my new defence lawyers Folmer Reindel and Korsø-Jensen. The court and prosecution had a cosy set-up with Manfred Petersen, one of them and they thought they could control everything. Manfred Petersen was nothing like Jørgen Jacobsen and could never be, although, I respected some of his work, obviously, he had to serve his paymaster as all defence lawyers at the time.

It was first after the Danish Law Society had expressed concern and advised that I should have two defence lawyers, that Folmer Reindel and Korsø-Jensen was allowed to defend me. 

 

 

I was chopped down

This tree (what is left of it), I passed for years on my daily walks in the great national park of Harz. It reminds me of what happened to me when I was chopped down by the Danish authorities at the prime of my life. I made the mistake to show too much, most of my roots could be seen and this made me vulnerable. To some extent, I was an open book. The lesson, do not show too many of your roots, hide some away otherwise you leave yourself vulnerable.

 

The companies had fulfilled all of their obligations until Mogens Hauschildt arrest for allege tax evasion

Advocate John Korsø-Jensen

The allegation for tax evasion, which was “used” to arrest Mogens Hauschildt with, was fabricated by the authorities in order to legitimise their illegal action and abuse of power.

The allegation was fictitious and never resulted in any indictment; there was no tax evasion.

From the first day of this miscarriage of justice, there has been a closed concerted conspiracy between the special prosecution, which they have themselves “fabricated” and thus instigated the case, the fiscal and financial authorities in Denmark, the courts and the Ministry of Justice.

Advocate Folmer Reindel

Most of the Danish media published, uncritically, all of the stories that they received from Bagmandspolitiet.

All giving headlines despite that most was fabricated lies and malicious innuendoes.

It was important to cause maximum losses for the investors and companies, through the use of the media providing false allegations, lies and a general cover-up of the truth.

After all, Mogens Hauschildt was locked-up and incarcerated in total Solitary Confinement.

Advocate Folmer Reindel

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