Extortion and Coercion by Employees: Case Example of Aaden Detective Agency Munich

A particularly interesting case of extortion and coercion in business dealings was experienced by the detectives of Aaden Detective Agency Munich in late summer 2015. Mr. Weiser (name changed) had previously engaged our private detectives for a minor personal matter. As he had been satisfied with our investigative work at the time, he remembered Aaden Detective Agency Munich when one of his employees in a managerial position began to extort him.

New Operations Manager Brings Workforce

The perpetrator, whom we will call Mr. Siegburg, had been given a responsible position in Mr. Weiser’s company at the beginning of the year, as the latter reported during a phone call with our Munich corporate investigators. Mr. Siegburg had primarily prevailed over other applicants because he brought with him a number of new production employees from an Eastern European country. The company grew rapidly and urgently needed new employees to handle large orders. As this is a specialized industry, qualified personnel are difficult to find, which is why the client of Aaden Detective Agency Munich gladly accepted Mr. Siegburg’s offer and hired both him and two dozen of the workers he had recruited.

Lack of Social Skills Leads to Problems

The new production employees performed reasonably satisfactorily, but Mr. Siegburg increasingly stood out due to a lack of competence on the one hand and questionable interpersonal conduct on the other. In endless discussions between Mr. Weiser and Mr. Siegburg, the client of Aaden Detective Agency Munich increasingly gained the impression that he was talking to a wall, as Mr. Siegburg either showed no understanding or simply failed to implement promised and necessary improvements, causing the same issues to arise again and again. When he then went so far as to have an employee of another company dismissed by filing a complaint after she had made a casual remark about the changed working atmosphere in Mr. Weiser’s company, the managing director reached his breaking point. He could not accept such treatment of people.

Demands and Threats Follow Termination

Another of many discussions with Mr. Siegburg took place. He likely expected yet another reprimand regarding his work methods, but instead Mr. Weiser presented him with a termination notice. There was nothing to discuss about it, his decision was final, but they could discuss the terms to ensure an amicable separation. However, Mr. Siegburg had no intention of an amicable resolution, as reported to our private detectives from Munich. Instead, the employee responded to his termination with a series of demands:

 

• no termination,

• a substantial salary increase for himself,

• a company car,

• additional undeclared cash payments,

• a significant wage increase for the employees from Eastern Europe whom he had recruited.

 

The client of Aaden Detective Agency Munich initially thought this was a bad joke, but then Mr. Siegburg presented his leverage: if the demands were not met, production would come to a standstill starting the next day, as none of the Eastern European workers would show up for their shifts – an economic disaster for Mr. Weiser!

Mass Sick Notes Shake the Company

The managing director did not agree to the demands of his audacious employee, but he underestimated his influence over the Eastern European workforce. The next morning, none of the scheduled workers appeared for duty. Every single one had called in sick with the same reason from the same doctor – an outrageous act by Mr. Siegburg, the employees, and above all the physician! The client of our Munich corporate detectives saw his situation slipping away, because if production stopped, he would not only be unable to deliver orders, but would certainly also lose hard-earned customers, as competition in the industry is fierce.

 

Consequently, Mr. Weiser reluctantly agreed to Mr. Siegburg’s demands during another meeting and explicitly stated that he felt coerced and that Mr. Siegburg’s actions constituted at least one criminal offense. The resulting additional costs placed a massive strain on the company’s profit margin. Therefore, this could not be a permanent situation, and after consulting with his attorney, Mr. Weiser contacted Aaden Detective Agency Munich.

Covert Audio Recording – A Sensitive Issue

The attorney had specifically recommended that Mr. Weiser hold another meeting with Mr. Siegburg and secretly record his statements. For this, Mr. Weiser required the assistance of Aaden Detective Agency Munich.

 

Covert audio recordings? These words set off alarm bells for any reputable detective. The spoken word is highly protected in Germany, and covert recordings are almost always illegal. However, Mr. Weiser’s attorney had examined the situation:

 

• What justified the measure? Mr. Weiser had become the victim of a criminal offense.
• Was the measure proportionate? The offense had caused significant financial damage to Mr. Weiser, therefore he had a very strong legitimate interest in its clarification.
• Were there less intrusive means to achieve a similar investigative success? According to all parties involved, there were none.

 

Therefore, the covert audio recording was assessed by the attorney as legal and proportionate.

Termination Yes, But… – New Demand

Before the meeting with the offender in a public restaurant, the Aaden detectives from Munich equipped their client with a recording device concealed within an inconspicuous everyday object. Mr. Siegburg appeared at the appointment and announced that he now wished to separate amicably from his employer, as the accusations of extortion and coercion had become too risky for him. Mr. Weiser knew how difficult the offender’s personal situation had been in recent years, and he had seen no other way out.

 

He had brought the termination document with him; however, it was tied to another condition: a substantial severance payment, to be paid in installments in cash and without invoices. In return, he would gladly assist Mr. Weiser in subsequently getting rid of the Eastern European workers. However, Mr. Weiser assured him that he had no interest in dismissing the workers, as he urgently needed them.

Continued Extortion of the Employer

The client of Aaden Detective Agency Munich accommodated the extortionist to the extent that he agreed in principle to a severance payment, provided that the matter would then be conclusively resolved. He explicitly asked Mr. Siegburg whether he could guarantee that there would be no further sudden work stoppages or other inconveniences if the payment were made. Mr. Siegburg confirmed this, thereby providing very strong evidence for the offense of extortion. Mr. Weiser then asked what would happen if he did not comply with the demands. His counterpart replied: "I have great influence over the Eastern Europeans..." but stated that he wished to part on good terms. Mr. Weiser emphasized that he could not afford to hand over the amount in cash and without documentation. A solution for installment payments could be found, according to Mr. Siegburg.

 

However, even if this were to happen and even if the matter were then concluded for Mr. Siegburg, Mr. Weiser would still have to deal with the consequences of the previous extortion, as he had been forced to grant the Eastern European workers new long-term contracts with completely excessive conditions. Mr. Siegburg claimed that the client of Aaden Detective Agency Munich was to blame himself, as he did not have to comply with the earlier demands. Mr. Weiser firmly rejected this, stating that he had had no other choice if he did not want to risk an immediate production stop and potentially the ruin of his company. What was in the past could no longer be changed, Mr. Siegburg remarked dismissively.

Alleged Agreement Ends Documentation

One of our Munich private detectives sat at a neighboring table during the entire conversation and was therefore able to witness the meeting. Ultimately, the opposing parties agreed that Mr. Siegburg would be placed on immediate leave and that there would be no strikes, dubious sick notes, or mass departures as long as he received his money. The offenses of extortion and coercion against the client of Aaden Detective Agency Munich were thus not only fulfilled but also proven.