Latvian State Police have requested criminal prosecution of insolvency administrators for embezzlement of more than EUR 1.4 million, as confirmed by the police.
During a pre-trial investigation, police found that a 1957-born insolvency administrator and his authorized representative born in 1977 were carrying out an insolvency procedure as insolvency administrators between 2009 and 2018. During this procedure they embezzled funds worth EUR 1 438 785.
Police could not trace the money transfer performed by the insolvency administrator and his assistant or how cash was used in relation to a specific insolvency procedure.
The investigation provided information that the money was used unjustifiably and in breach of the Insolvency Law.
Police also concluded that a person involved in the insolvency procedure had three pieces of real estate alienated. Money that was unjustifiably enforced from this person – EUR 71 800 – was laundered by transferring the money to an account of a Germany-based company and using it to purchase Porche Panamera, which was later used by the authorised representative.
On 27 May the Economic Crimes Enforcement Unit finished the investigation and sent the criminal case to Riga court district prosecution office for the commencement of criminal prosecution of two persons in accordance with sections of the Criminal Law on embezzlement, large scale fraud, as well as money laundering.
Both suspects were presented with security measures not involving deprivation of freedom and had their property arrested.