Jailed German billionaire, NC man charged with swindling $311M from institutional investors

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Federal prosecutors in Philadelphia say a jailed German billionaire and another hedge fund executive defrauded institutional investors of more than $300 million.

An indictment filed Thursday says K1 hedge fund group founder Helmut Kiener partnered with a North Carolina man to swindle Barclays Bank, Bear Stearns and BNP Paribas out of $311 billion.

Court documents say Kiener used some of his ill-gotten gains to buy oceanfront real estate in Florida, an executive jet, a helicopter, luxury cars and boats.

Kiener was convicted of similar charges in Germany in 2011 and sentenced to more than 10 years in prison.

Sixty-one-year-old John Tausche of Blowing Rock, N.C., was charged with bank fraud and money-laundering. His lawyer says he's cooperating with the government.