Lars Windhorst Under Investigation in Germany Over Banking Rules

German financier Lars Windhorst is under investigation in Berlin for allegedly breaching banking rules with a financing vehicle that was set up to help pay back investment firm H2O Asset Management.

At the heart of the probe is Evergreen Funding, a company Windhorst created to raise money and buy back bonds from London-based H2O, and its dealings with his holding company Tennor Holding. The Berlin prosecutor is leading the investigation after a complaint from German financial regulator BaFin.

The probe is the latest twist in a two-year saga surrounding the links between H2O and Windhorst. The Evergreen trade was ...