The Many Losers

The Truth and Justice

The real losers were the truth and justice. Sadly because the truth did never come out – at least was not allowed to come out in the open.

Justice which turned into injustice which in reality took place – even in Denmark, a country which pride itself of human rights.

As I have stated other places on these pages it was not a “victory” for me to see Denmark judged, in fact, no victory at all. I felt like others who have suffered grave injustices that nothing can ever replace the injustices suffered and certainly not some court, even the European Court of Human Rights. A real victim of injustices is a corpse, not a living thing – it is lying there DEAD.


Denmark was the real loser since the authorities broke the European Convention of Human Rights with their injustice; something which a state like Denmark is not worthy of. They did not break with something trivial in human rights, they broke one of the European Convention for Human Right which is the foundation of law, namely providing a fair trial.

Denmark had previously kept a “clean” slate and had not lost a case at the Court of Human Rights for more than forty years, since their accession to the Convention in 1949.

The Court of Human Rights verdict did bring some realism to the reality as to Denmark’s reputation because injustices did take place in Denmark and still do take place I am sure. Nevertheless, I believe that Denmark somehow lost something very special, like when a woman loses her virginity, which meant they could not just point at other nation’s injustices in the future since they were not faultless themselves. When you live in a glasshouse, you can hardly throw stones at others.

One respected academic Professor of Law Ditlev Tamm has said that a “judicial revolutions as to human right” has taken place in Denmark. Some law academics have expressed that big changes have taken place in the judicial mentality. Moreover, the judgement in my case at the Court of Human Rights was a “prestige loss” for Denmark causing tremors in the judicial system. I have always maintained that big changes to any system in Europe have to come from outside the country.

Since my judgement against Denmark, several more cases have gone forward to the European Commission of Human Rights and Denmark has also made more losses at the Court. Injustices do happen – even in Denmark!

The Danish Media

The Danish media was a great loser; they had an obligation to expose injustices in the system and bring the truth and the real story to the public. But instead, the media took the easy way out and served the authorities as henchmen, denying me a fair trial. The Danish press was not worthy of its responsibility. Media publishers have power without responsibility.

The free press does have a great responsibility as the most important mechanisms for ensuring that the government respects the rights of its citizens.

Most of the Danish media failed badly in ensuring my rights were met, such as being treated fairly and according to basic human rights – that you are innocent until proven guilty.

Most of the Clients of SCE

It is difficult for me to quantify the many losses since one cannot quantify other peoples’ anxiety and worry. So many hundreds of investors lost money as a result of Bagmandspolitiet action – totally unnecessary. Nevertheless, there is no doubt that my family and I lost the greatest amount, both intangibles and intangibles losses.

The large amounts of assets were totally squandered by the Bagmandspolitiet and the authorities’ concerted actions with regards to the companies, and the potential in the years to come for these entities.

I personally offered to bring DKr.12-14 million to Denmark in February 1980, just after my arrest and solitary confinement, but neither Bagmandspolitiet nor the authorities liked that because then they could not justify their actions on the 31st January 1980 – arresting me for open TV and most of all closing the companies.

As to the investors, I really felt bad that it was some of the loyal clients of the companies who lost out. These clients should know that I, “come snow, come rain“, would have fulfilled all of our obligations and their purchases and investments.

The companies and I had fulfilled our entire obligation until the day of my arrest and the closing of the companies, and this fact cannot be disputed.

Being unable to do anything from my solitary confinement in the four to six weeks after the event, I was unable to benefit from the knowledge I had on the markets and the considerable potential of the markets. This was a crucial time and a great opportunity which so rarely come along in life. Knowing that the prices of precious metal would crash for certain, and being unable to take advantage of this, caused me considerable frustration and pain in my solitary confinement, a frustration which turned to depression.

The many losses can be summarised somewhat by the tangible and the intangible losses, where I consider the intangible losses the greatest, like Denmark’s loss of reputation with regards to human rights.

The tangible losses were the money lost by the clients of the companies, the huge loss of my assets and my shareholdings in the many companies and the ultimate cost to the Danish taxpayers from the authorities’ actions.

The intangible losses included all the terrible anguish and distress felt by so many clients of the companies and their families, my staff of the companies and for my family and me.

The Danish Tax Payers

Although I consider that the biggest loser was Truth and Justice. The Danish taxpayers were the big losers in the action by Bagmandspolitiet (SØK) which cost the authorities possibly up to 50 million kroner. Nevertheless, the biggest tangible losses were made by the many investors in SCE ApS, the staff, my family and me because of the future potential and profitability of the companies.

The investors in SCE ApS, who speculated in 1977 – 1978, bought silver, platinum or rhodium by Deferred Delivery Contracts (margin speculation) and before October 1979 would have received their huge profits; instead they all lost out due to the action taken by the Danish authorities and the way the liquidators acted as henchmen for the Danish authorities. Worst the many investors who had taken my advice and purchased for delivery.

As to all these investors in SCE ApS, it is a fact that I had previously shown my total support to this company and my willingness to back up the company financially, including from my Swiss companies. Until my arrest, every client had received fulfilment on their contract and company undertaking.


I did win against Denmark at the European Court of Human Rights, but it was not worth it considering all the injustices I suffered before since these injustices and losses were far greater to my family and me.

One can consider that Denmark was also a winner in many ways. The big changes to the Danish justice system had to come from outside, such dramatic changes could only be enacted from outside the system.

I understand that there have been many changes made to the Administration of Justice Acts (Retsplejeloven), since my time. As I am not familiar with these changes I leave it to others to comment, nevertheless big changes have been made since 1984 and after the judgement against Denmark at the European Court.

Other winners: some made concrete money on this tragic ordeal, such as the accountants helping Bagmandspolitiet to justify their actions; they walked away with more than to 5 million in fees.

The leeches and vultures as I call them, the lawyers and liquidators made their fees and cuts as always, mostly on misery. After all, that is their profession. Following my case, many individual investors had cases running with the fiscal authorities for years where lawyers charged their fees, I am sure.

Possibly the biggest winners were the clients of the companies who had entered into contracts on margin “speculations” in the months before the closing of the companies.

These clients were able to get away with not paying for their true losses, even at the time of my arrest and the closing down of the companies. All of these investors would have made huge losses if the authorities had not closed SCE and arrested me.

Some of these investors had considerable influence in the Danish society and due to the action taken by the authorities, ultimately gained by not having to pay their losses from their speculations. Speculation they themselves had entered in to by buying precious metal on margin and indeed agreeing to a contract, which the Danish authorities conveniently made non-void.

In the age of WikiLeaks, it is my intention to list all of the clients, with names on this web site; this may bring out some dislikes, but it may also bring something positive with regards to the people of influence who either kept quiet or passively witnessed all the injustices at the time.

I said from the first day of my arrest that I was solvent – the auditors later confirmed this.

So how could the companies and I be declared bankrupt?

At the outset of the trial in the lower court (Copenhagen City Court), my defence attorney Folmer Reindel said to a leading newspaper, Berlingske Tidende:

 “With the collaboration between the judge (Claus Larsen), the prosecution and the prison services, which consequence seriously affected and prevented the defence – I fear a miscarriage of justice”

“Med det samarbejde, der I sagen foregår mellem dommeren, fængselsvæsenet og anklagemyndigheden, og hvis konsekvens er en væsentlig hindring af forsvarets mulighed, frygter jeg et justitsmord”

At the outset of the appeal trial at the High Court, Folmer Reindel said to the Court

“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 court as henchmen”

It was obvious to everyone except the tabloid media.

Spreading the Cancer of Mediocrity

Denmark is a small community and is not the place for anyone who has something great to give or raise their head above the parapet.

Danes just have to be so proletarian – små borgerlige – this is their aspiration so very few Danes dare to be something different. To be a proletarian is their aim – and never forget – not to stray, to be just a little different can’t be accepted. This attitude can sadly also be found in many parts of the world and in different societies.

Many good Danes have fallen foul to the Danish “Jantelov”. Some left Denmark and created something great in other societies. A loss to Denmark of its sons and daughters.

As to the media, there seems to be a bias in most news reporting; it is daily that we see reporters lie by inference and omission without any accountability. I have seen well-intentioned news publications fly into a state of high dudgeon and defend their reporter’s dubious behaviour on the premise of newsroom morale and press independence.

Media publishers do have power without responsibility.

The Danish media failed in its responsibility; journalists made no objective inquiry to determine the real background of the events which took place on the 31st January 1980, moreover the damages which had been caused that first day with the closing of the companies.

After enduring 4 years of pre-trial restrictive imprisonment and long solitary confinement, I had to endure editorial in the tabloid press saying

The gilded Silver king was the best paid prisoned in the country, shovelling money from my prison cell”.

Apart from the fact that I was not a “prisoner”, such editorial at a time when 5 judges in the High Court was considering my appeal, shows clearly the pre-judicial bias from the Danish media – A Media Lynching.

A few serious journalists, such as Leif Blædel and Rolf Bagger, later became aware of what was taking place, but then it was too late and the damage had been done.

Rolf Bagger asked some serious questions as to the justice system in Denmark and Bagmandspolitiet in a large article in Berlingske Tidende Weekendavisen. (see: Bagmandspolitiet og Retsikkerheden ) The media really missed the underlying story and truth – the justice system reflected a political view where “profits” and “speculations” had become ugly words. The justice system had failed to furnish the mechanisms for preventing incompetent people from finding their way into the process, accumulating important responsibilities and surviving in spite of the glaring injustices that they perpetrate.

Something the media in Russia or DDR could do nothing about, whereas in Denmark it had such possibility, but moreover the obligation to do something about.

Important Facts

  • Until my arrest “for alleged serious tax evasion” and the closing of the companies, the companies had fulfilled all of their obligations to their clients and were not involved in any unlawful activity.
  • Until my arrest, the companies were not involved with any litigation or any form of dispute with clients.
  • All disputes reported in the media came after the closing of the companies, my arrest and the media publicity. The fact remains that the companies had no legal dispute with any client as per 31st January 1980.
  • The companies had no liquidity problems in January 1980 – Most of the companies and my personal liquid assets were in London, not in Switzerland or some remote offshore place hidden in a bank.
  • I have never seen the original warrant for alleged serious tax evasion and what documentation was used to convince the court and justify the issue of such a warrant.
  • I had never been contacted before with regards to these allegations of serious tax evasion, nor had my accountant or lawyers.
  • I hold the Danish “record” for being kept in pre-trial detention – 1492 days, at least in the last 300 years.
  • I never was a prisoner according to the Danish Prison Service (Kriminalforsorgen) – “only” a person kept on remand for 1492 days. Never serving a sentence.
  • An internal memorandum from the National Bank in May 1979 showed that the National Bank had been told by the police that it was impossible to make a case against the companies and me since all clients were satisfied with the company and not willing to complain about anything.
  • An internal memo by the Copenhagen Tax Office in October 1979 concluded again that the National Bank and the fiscal authority were unable to find any clients who would complain against the companies. Moreover, this memo confirmed that the standard business terms used by the companies did not require SCE to buy or hedge the margin sales. SCE had no obligation to hedge the sales of precious metal on the terminal contracts – deferred sales. The memo further confirmed that most investors did not want their silver delivered, but just liquidated their contracts with SCE.
  • I was solvent at the time of my arrest when I was declared bankrupt by a Commercial Court (even the Prosecution’s expensive auditors confirmed this).
  • I was declared bankrupt by the Commercial Court, not having proper access to the seized material with Bagmandspolitiet and despite having most of my assets outside Denmark. Moreover, most of these assets outside of Denmark I was allowed to keep.
  • I offered the Commercial Court, in February 1980 shortly after my arrest, to bring all my liquid assets, approx 16-20 million, to Denmark if I was immediately released in order to run the companies and attend to my affairs.
  • The dates selected for making the balances for the estate of the bankruptcies’ was entirely arbitrary so as to give Bagmandspolitiet the best scenario for later making a case against me. Moreover, preventing the registration of SCE A/S did “save” a lot of people from possible bankruptcy as they owed the company money.
  • I have never seen the accounts of the estates from the appointed liquidators’ advocates Bent Jespersen and Egon Høgh. What happened to the assets of the companies and my personal assets, my family’s art collection, antiques and valuables?
  • I never had contact with any criminal elements in Danish society before the events accept the “criminals” among the authorities.
  • I never had any plans to run away to South America – all stories planted by the Special Prosecution.
  • I never served a criminal sentence anywhere, before the events in Denmark. The Danish Prison Service told me that I never served a sentence and was only kept on remand for 1492 days.
  • How crazy the Danish bankruptcies were, the liquidator later handed my attorney Folmer Reindel in 1986 a collection of 99 gold coins to give me (worth today US$110,000), since these were “my personal coins”. I was not allowed many other personal gold coins and collections including my many Miro pictures and my banknote collection. Nevertheless, the fact remains that I was allowed to keep many valuables, which I was thankful for to the liquidators, but this makes a mockery of the Danish bankruptcy laws and procedures. I was able to keep my Rolex gold watch on my wrist, from the day of my arrest until my freedom 1492 days later. The watch, which is still in my procession and now valued in excess of 350,000 D.Kr.
  • As to the Danish bankruptcies and how they could make me personally bankrupt, without any documentation, despite I personally offered to bring 14-16 million D.Kr. of my own money to Denmark, which they refused. As I was the unlimited partner in M. Hauschildt et Cie in Zurich, worth at the time in excess of 6 million Swiss Francs – how could I be bankrupt?
  • The Danish media could write more than one thousand five hundred newspaper and magazine articles, broadcast radio and television programs about my case and the event, but not bother being present at the European Court of Human Rights when the full Court of 17 judges from all the member countries considered the case. A case which ended in a Judgement against Denmark. Denmark, stood accused and later judged for the first time in nearly forty years earlier since the Court was established. Whereas the French, German, Belgian and Dutch television was there, none from the Danish or Scandinavian media bothered.
  • The Danish authorities with Bagmandspolitiet was total contemptuous of the European Convention of Human Rights and took my correspondence with the ECHR and kept it away from me for years preventing me my legal rights to free communication with the Commission, moreover that I could ever have the Court to deal with my complaints about my treatment and the conspiracy
  • The Danish authorities did not pay the money due from the compensation Judgement of the Court of Human Rights (ECHR) since they claimed I owed money to pay for the trial – a trial which the ECHR judged to be unfair and confirmed was a breach of the Convention Article 6 – A Fair Trial.
  • Yes, justice is an illusion!


Share This