An Austrian-based trading company faced charges by the Austrian authorities that subsequently led to a lawsuit. The company had been dealing with distributors in a post-Soviet country that worked with a highly non-transparent offshore company structure. The Austrian company was now accused of tax evasion and money laundering practices.

The company approached LM Prisk for an expert opinion on its business practices relating to the political and business environment of the (post-Soviet) country. Applying our unique in-depth insights into the country and our long-term expertise and academic recognition, we delivered a detailed written statement on very specific topics, following the usual structure of expert opinions.

Our expert opinion provided the judge with a more comprehensive understanding of the constellation the company was confronted with in the given country. Although the company was ultimately sentenced because its actions were grossly negligent, our expert opinion led to a significant reduction of the penalty. In a further step, LM revised the company’s business strategies in the post-Soviet country and introduced a best practice concept including a check-list for fulfilling due-diligence obligations in future.