CHF 12 Million Fraud Scandal at Medzys: The Rise and Fall of Trust, Threats, and Abandonment

The Medzys saga has reached a critical juncture with the recent arrest of Hans Mies, a central figure in a CHF 12 million fraud scandal that has rocked the Swiss startup landscape. Mies, along with alleged partners, is accused of leading a complex network of deception, targeting investors that included old friends, family offices, and the Dubai-based Lootah Group. Swiss authorities seized properties and luxury rental vehicles tied to Mies, a move that marks a potential resolution in one of Switzerland’s most convoluted startup fraud cases.

Fraud Expands Across New Frontiers

Founded under the Egalify-Ventures umbrella with a focus on socially responsible projects, Medzys initially attracted investors with promises of high returns and a commitment to UN sustainable development goals. But according to Medzys’ founders, Mies broadened his fraudulent reach, soliciting investments from family offices and international backers. With Luca Reho as CEO, Rootbridge Capital—a venture established after the original fraud—allegedly continued to target investors from the initial Medzys venture. Medzys claims Rootbridge was funded in part by resources meant for Medzys itself, suggesting that the fraud may be ongoing.

“The extent of this scheme is shocking,” stated a Medzys founder. “Not only did Mies and Reho lure in significant backers, butLuca Reho also used the same investors they defrauded to sustain new ventures.”

The Role of Oddo BHF, IPTIQ, Portas Capital, and Questionable Partnerships

Medzys has raised concerns about the involvement of experienced figures from established firms—Alexander Schertzinger from IPTIQ (now AXA), Martin Liebi from Oddo BHF, and Peter Stocker from Portas Capital—whose credibility likely bolstered investor confidence in Egalify. Despite evident inconsistencies in Mies and Reho’s presentations, Medzys alleges that these partners failed to conduct adequate due diligence, which allowed the fraud to persist. Their roles in lending trust and perceived legitimacy to Egalify made them central figures in Medzys’ struggle to secure funding and resources for product development. Martin Liebi, director of Oddo BHF even appeared as a partner in Egalify-Ventures on Linkedin. The founders of Medzys was assured that everything than was ok.

As experienced professionals, Liebi, Schertzinger, and Stocker were expected to enforce rigorous standards. Medzys claims that these figures overlooked discrepancies, such as unverified payments and missing share certificates, which ultimately allowed Mies and Reho to continue unchecked. The oversight from seasoned players who might have prevented the scandal reflects a broader need for accountability in the venture capital world.

Medzys’ Struggle for Survival Amidst Abandonment and Threats

Despite the turmoil, Medzys advanced its mission, completing the second generation of its Medzock device for Restless Leg Syndrome. Just as they were poised to launch and fulfill orders, the founders exposed the fraud, prompting violent threats from Mies and Reho. The founders report that Mies and Reho even resorted to intimidation tactics near their Zurich address, forcing the founder to ultimately flee to his homecountry, Norway.

Medzys’ remaining investors had a chance to salvage the project with a CHF 20,000 contribution to bring the Gen 2 Medzock to market. However, the promises of help turned out to be superficial, with backers fading away and offering only silence as Medzys struggled for stability. What was initially presented as support appeared to be an attempt to stall the founders’ progress and suppress their voice.

The Medzys case is a stark reminder of the need for rigorous compliance practices and due diligence in venture capital, even when reputable figures are involved. The roles of Schertzinger, Liebi, and Stocker will likely face increasing scrutiny as legal proceedings continue, potentially shaping future standards for accountability in the industry.

With Mies in custody, the final chapter for Medzys remains uncertain. The insolvent founders continue their fight, calling on the industry to support meaningful change and protect startups from exploitation. For Medzys and similar ventures, this story underscores the crucial need for transparency, ethical standards, and unwavering diligence in venture investments.