Financial Consultant, Adviser Arrested In Money Laundering Sting

Bloomberg News and The Miami Herald, citing people familiar with the matter, reported Thursday that the sting was tied to an international probe of German hedge-fund firm K1 Group.

Published reports out of Germany on Thursday indicated that German authorities have arrested a hedge fund manager in the probe. Bloomberg News reported Thursday that Helmut Kiener, K1's founder, was the person arrested.

A spokeswoman for the U.S. Attorney's office in Philadelphia declined comment when asked if the case was tied to a probe of K1 Group.

A lawyer for Seuss didn't immediately return a phone call seeking comment. Meyer was in custody and expected to appear in court in Nebraska later Thursday.

Seuss operates a consulting business called Seuss and Partners LLC in Miami and specializes in setting up offshore companies and foreign bank accounts to shield investments and monetary funds for clients around the world, U.S. prosecutors said.

Meyer, a U.S. citizen originally from Germany, is a financial adviser specializing in life insurance investments, U.S. prosecutors said.

U.S. prosecutors have alleged that Meyer and Seuss were contacted by an undercover agent posing a businessman involved in software and CD/DVD piracy and agreed to help launder about $500,000 in purported illegal proceeds from the piracy business between July 2007 and June 2009.

The undercover agent allegedly had a meeting with Meyer and Seuss in Philadelphia in July 2007 and later met with Meyer in Florida in February 2008, U.S. prosecutors said.

The U.S. charging documents don't reference K1 nor do they accuse the hedge- fund company of wrongdoing.

-By Chad Bray, Dow Jones Newswires; 212-227-2017; chad.bray@dowjones.com

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  10-29-091210ET
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