German Drug Wholesaler's Board Members Arrested

Following a major investigation of the affairs of three German drug wholesaling groups, three former board members of these companies have been arrested on charges of embezzlement of over 10 million Deutschemarks ($6.3 million), according to the Nuernberg Justice Department.

The three men were formerly on the boards of Otto Stumpf AG, F Reichelt AG and Hageda AG. The only one named to date is Rudolf Dittrich, who left Stumpf in May 1993. The current board maintains that Mr Dittrich is largely to blame for the high losses of 56 million marks reported in 1993, through diversions of capital into loss-making channels.

Mr Dittrich has rejected these accusations, and a legal case between him and Stumpf is currently pending.