The company was established in 1861 in Markneukirchen as a violin manufacturer. The owner was Dietmar Harry Joachim Machold, born in 1949 and resident at Schloss Eichbüchl bei Katzelsdorf. Of the surviving 600 violins, 60 cellos and 12 violas crafted by Antonio Stradivari in Cremona, Italy, around half have passed through Machold's. The company also sold Guarneri del Gesù violins. Dietmar Machold was given the title of honorary professor for a collection of historic violins he procured for the Oesterreichische Nationalbank. In June 2011 one anonymous buyer paid $15.9 million for the Lady Blunt Stradivarius.
Criminal investigation
Two bankers from Sparkasse Bremen bank invited Roger Hargrave to inspect their violins, which they believed to be Stradivarius violins. Machold had represented them as such when he offered them as collateral for a multi-million dollar loan. Had the violins been genuine Stradvari their estimated combined sale price would be around $6.8 million. Upon viewing the instruments Hargrave said they were not Stradivari. The violins were also examined by an expert in forestry; in his analysis of the wood used to craft the violins, Micha Beuting concluded that trees had not been felled during Stradivari's lifetime. Beuting also stated that the wood had not come from the Southern Alps, where the spruce trees used by the violin can be found. The 1765 Carlo Ferdinando Landolfiviola, which had been given to Machold in commission, appeared on a Flessabank list having been used as collateral, but the bank had not received physical possession of the viola. Instead the viola, along with another by Camillus Camilli, had ended up at the Raiffeisenlandesbank Niederösterreich-Wien. He then gave the lenders at Flessabank different instruments that didn't belong to him, which were seized during the investigation. Machold told police that he had sold the Rosé Stradivarius in 2006 for €3 million to pay off his loan with BAWAG. However, he had used the violin for collateral with HypoVereinsbank who received nothing. Machold admitted that he "duplicated certificates for violins" when he needed. 46 criminal complaints were filed in Australia, the United States, the Netherlands, Belgium and Germany.
Arrest and Conviction
Dietmar Machold was arrested in Switzerland in March 2011. He was accused of embezzlement and grand commercial fraud, among other things. A further reason for his arrest is the fact that Machold has settled in Switzerland instead of remaining in Austria. In November 2012, Machold was convicted of embezzlement and fraud by an Austrian court. He was sentenced to 6 years in prison.
Dietmar Machold purchased Eichbüchl Castle in 1997; he paid 1 million deutchemarks for the 700 year old castle, which is located outside Vienna. The castle was sold for €3.5 million, and the collection of period furniture, rugs and library for €120,000. On October 22, 2010, Dietmar Machold initiated a restructuring proceeding with self-administration with regard to his private assets. On December 1, 2010, the court revoked his right to self-administer his assets. On December 29, 2010, the court appointed a committee of creditors and the proceedings were altered to include insolvency proceedings. The business was ordered to be closed down on February 4, 2011.
Company insolvency
On October 29, 2010, Dietmar Machold initiated a restructuring proceeding with self-administration with regard to his company assets. For this, the court revoked his right to self-administer his assets on November 23, 2010. The company was ordered to be closed down on December 21, 2010 and the proceedings were altered to include insolvency proceedings.
