Unlawful Competition | Competition Fraud

The IHK-certified commercial investigators of Kurtz Investigations Frankfurt conduct enquiries when illegal collusion between competitors, unlawful competition and other forms of competition fraud are suspected: +49 69 1201 8431.

Case Study: Fraud Involving Low-Cost Dental Prostheses from Poland

Germany is well supplied with dentists; only a few countries are better positioned in this respect. Hessen in particular boasts more than 83 dentists per 100,000 inhabitants. As a result, competition is correspondingly fierce in the home region of the private investigators of Kurtz Detective Agency Frankfurt. Dr Henning Wolf, who recently contacted our Frankfurt private detective agency to request assistance, is no stranger to this pressure. Three years ago, the Frankfurt-based dentist opened a joint practice in the Ostend district together with a former fellow student and has since been struggling with the intense competition fuelled above all by ever-escalating discount battles, especially in the field of dental prosthetics.

"I have ongoing expenses and loans to repay for my studies and practice – I simply cannot keep up." He emphasises that he is not aiming to pay off the proverbial Porsche or to buy a villa with a pool: "The clichés about wealthy dentists are, of course, well known and often not entirely off the mark, but in reality, there is fierce competition among dentists just like in any other sector." His goal is not to get rich quickly, but to remain competitive within a fair and transparent marketplace. However, he increasingly feels that honesty and fairness may be lacking at times, and thus he wishes to be certain – which is why he has decided to seek the help of our Frankfurt private investigators.

Unbeatable Prices – But Why?

One particular colleague has come under Dr Wolf’s scrutiny: this dentist opened his practice in Frankfurt shortly after Wolf, works alone rather than in a joint practice, but already appears to have cultivated a remarkably large patient base and seems to enjoy above-average commercial success; Wolf himself has seen several of his own patients migrate to the competitor. "Of course, I am jealous," Wolf admits frankly to the investigators of Kurtz Detective Agency Frankfurt, "and if he simply is a brilliant dentist, good for him – but I do not want any dodgy dealings carried out at the expense of colleagues and, above all, the patients!" Ultimately, it was not mere jealousy that prompted him to contact our Frankfurt private investigators, but tangible indications whose validity he wished Kurtz Investigations Frankfurt to examine.

According to Wolf, internet reviews and reports from first-hand sources suggest that the colleague in question does not possess qualities that would justify such tremendous success: neither are his technical skills apparently superior, nor is his chairside manner exceptional – but everyone seems to agree on one thing: in some respects, he is unbeatable in terms of price. "Word gets around", Dr Wolf explains, "people do not have money to spare like before. Particularly with dental prosthetics, bridges and crowns, costs quickly run into several thousand euros – and without much thought, the cheapest offer is often chosen." Rumour has it among Frankfurt dentists that something is amiss. Though the client of our Frankfurt detectives does not like to rely on gossip, he prefers to know for certain. It has long been common practice to have dental prostheses produced abroad – a simple crown that costs at least 200 euros in Germany can be outsourced to Eastern Europe or Asia at 70 to 80 per cent lower cost. However, this must be explicitly requested by the patient; the production must be transparent and the savings must directly benefit the patient. The dilemma: German-made dental prostheses are world-leading in quality and durability, meaning many patients are reluctant to use foreign products; on the other hand, German quality inevitably comes at a price. The suspicious colleague seems to exploit this predicament, as our private investigators from Kurtz Investigations Frankfurt soon discover: though naturally sceptical of dental appointments, one of our Frankfurt investigators recognises an ideal opportunity to gather key background information for the client – and reluctantly books a long-overdue dentist visit.

First Step: Appointment with the Target

Obtaining an appointment proves challenging, as Dr Teichmann’s waiting list is predictably long. However, our Frankfurt investigator manages to convey the urgency of the matter (purportedly due to toothache), and a rather prompt appointment is arranged – much to his dismay: "I would rather have taken on a group of 15 thugs, but you do what you must for the client", he later jokes. Indeed, a crown may well be in order, but what the dentist does not know: the patient’s real goal today is to gather background information.

Initially, the image previously pieced together proves accurate: the dentist appears technically competent but not exceptional, and his manner with patients is neither warm nor attentive. When it comes to the matter at hand, the suspicion is fully confirmed: our Frankfurt detective feigns willingness to proceed but expresses concern about the costs, asking whether something could be done to make the treatment as affordable as possible. The dentist suggests he might offer a discount of 30, perhaps even 40 per cent – he would double-check. Our investigator seizes the moment and asks directly about the option of using prostheses from abroad; this is immediately dismissed: no, they do not do that; they only provide the best quality for their patients and exclusively collaborate with a German-based dental laboratory. When asked which laboratory it is and where it is located, the dentist becomes visibly curt but eventually searches out a small brochure, which he hands to the investigator. One could look inside: only the best, flawless German craftsmanship. The investigators of Kurtz Detective Agency Frankfurt thank him politely and take their leave, claiming to think the matter over thoroughly.

Supplies from a Dental Laboratory Near the Polish Border

Our Frankfurt private detectives indeed think the matter over – though not as the dentist imagines. Using the brochure, they quickly identify the supposed laboratory: it is located in Germany, as confirmed by a spotless website. However, the investigators of Kurtz Investigations Frankfurt soon grow suspicious: the dental laboratory is said to be based in Ludwigsdorf, a small locality belonging to Görlitz, only just over an hour’s drive from Dresden. The client is contacted immediately and sees his suspicions confirmed: discounts of 30 to 40 per cent for German-made prosthetics are impossible; anything above 20 per cent is considered dubious. Görlitz famously lies directly on the German-Polish border, so Dr Wolf gladly endorses our suggestion to inspect the laboratory in person.

The following morning, the colleagues of Kurtz Investigations Dresden set off for Ludwigsdorf, reaching the village within an hour. It turns out to be a charming little settlement with fewer than 800 residents – and almost certainly not the location of a dental laboratory. The address listed on the homepage belongs to an unremarkable rental property, though the name of the searched laboratory appears on the letterbox and bell panel. No one seems to be present, so the detectives of Kurtz Investigations Dresden decide to observe the property for a few hours in hope of solving the mystery. And indeed: not long afterwards, in the early afternoon, an inconspicuous VW estate car arrives – except that its Polish number plate immediately catches their attention. The driver enters the building but emerges only minutes later carrying a stack of envelopes, which he places in his car before driving off. Any idea of questioning him is quickly dismissed; instead, our investigators take up pursuit. Their suspicion proves correct: the journey leads back to Dresden, then on to Leipzig, and finally to Frankfurt am Main, where the man stops at various dental practices for about half an hour each time. When the fourth practice in Frankfurt turns out to be the target practice, our detectives have seen enough. It is evident that something is not right about this supposedly inexpensive dental prosthesis – and the client of Kurtz Investigations Frankfurt is promptly informed.

Additional Dentists Involved in the Fraud

It is now certain that the target and at least three additional dentists in Dresden, Leipzig and Frankfurt have had their inlays, crowns and bridges produced cheaply in Poland while billing higher charges for German-made prostheses to patients and insurers. The client of our detectives from Frankfurt will undoubtedly soon benefit from an increased number of patients – and already enjoys the reassurance that it was not envy or resentment, but rather his good instinct that led him to entrust Kurtz Investigations Frankfurt with this investigation.

Note

To preserve discretion and protect the privacy of clients and target persons, all names and locations in this case study have been altered beyond recognition.

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