Thielert Denies Fraud Allegations

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Key Takeaways:

  • Thielert, a German diesel aircraft engine company, is refuting accusations of financial fraud and claims that its products are fictitious, allegations which previously caused a significant but largely recovered stock price drop.
  • The company asserts its financial reports were approved by auditors and highlights its established market presence, having built and sold over 1,500 engines for general aviation and unmanned aerial vehicles.
  • Despite the allegations, Thielert's recently released third-quarter results show increasing sales and profits, affirming its position with Centurion brand engines used in various aircraft.
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Thielert, a German company that builds diesel aircraft engines, has rebutted accusations alleging that some of its financial reports were fraudulent. The allegations first surfaced in October, and briefly deflated the company’s stock price by 40 percent, Thielert says. At that time, the company said its balance sheets had been approved by auditors and also passed an additional stringent review before its initial public offering. CEO Frank Thielert comments: “We are confident that our good products and excellent market position will enable us to press ahead … We will do everything in our power to defuse the allegations as quickly as possible.” This week’s statement from the company said the allegations have been discussed in Internet forums. “The machinations are becoming increasingly grotesque in so far as it is alleged that Thielert AG does not have products at all and merely exists through fictitious invoices,” according to the statement. “Thielert engines have been operating in general aviation and unmanned aerial vehicles for years. Far in excess of 1,500 engines have been built and sold.” The company’s stock has largely recovered from the initial dip and has responded less drastically to later “waves” of accusations, the statement said. Third-quarter results were released this week, and show sales and profits on the rise. Thielert also builds engines under the Centurion brand. They’re available as a retrofit for the Cessna 172 and Piper PA-28 and are factory-installed in Diamond DA40s and Twin Stars.

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