The former manager of the Rosengarten nursing home in Terrible Sauerbrunn, Austria, pleaded not guilty Monday to charges of fraudulent bankruptcy and negligent endangerment of creditors’ interests, according to reports from the Landesgericht Eisenstadt court. The case centers around the financial collapse of the facility in November 2023 and allegations that the former owner improperly benefited from its sale.
The 64-year-old woman, who has not been publicly named, appeared in court and stated, “I am not guilty,” and added that she remains “completely shocked that this situation could not have been prevented,” according to Austrian news outlet Kurier. The proceedings are being closely watched as they shed light on the complexities of financial management within Austria’s elder care system.
Prosecutors allege the woman sold the nursing home and its property shortly before its insolvency, distributing the €2.1 million in proceeds to herself. She is being defended by attorney Ernst Schillhammer. The court heard that the woman maintains she followed the advice of her tax advisor.
In a statement read before the court, the former manager asserted that she invested “several million euros” of her own money into the Rosengarten facility after acquiring it in 2010, and repeatedly expanded the property. She claimed the facility was “an essential part of my life.” At the time of the insolvency, the home cared for 51 residents with a staff of 26.
The former manager attributed the financial difficulties to a change in regulations regarding non-profit status, which would have prevented her from receiving payouts as a private operator. She stated her tax advisor recommended the course of action she took. She described her relationship with the advisor as “familial,” but noted she has since changed advisors, Krone reported.
The woman also pointed to the selection of her successor as managing director as a contributing factor to the home’s downfall, noting that the successor filed for insolvency just weeks after taking office. She expressed doubt that insolvency was necessary, claiming she could have provided the company with an additional €150,000.
The court has adjourned for witness testimony. Attorney Ernst Schillhammer, who specializes in economic and corruption criminal law, is representing the former manager, according to his firm’s website Dr. Ernst Schillhammer. The case highlights the potential legal ramifications for those in leadership positions within Austria’s care facilities.
