Riga City District Prosecution Office has decided to commence criminal prosecution of two people in the criminal case surrounding the tragic fire that took place at an illegal hostel in Riga, Merķeļa Street, in which nine people died.
These two are Ernests Rieksts and Andrejs Gailis.
The prosecution office reports that, according to official charges, the two men decided to expand their existing business, which involved accommodation services in Riga.
The two decided to acquire two pieces of real estate. They then performed reconstruction to allow providing accommodation to a large number of people in rooms.
One of the accused purchased two apartments adjacent to their existing real estate. These apartments were later given to the other accused person’s for use. He then organised and was in charge of arbitrary, unapproved reconstruction work, combining the two apartments into one, refurnishing and creating 34 separate rooms to allow for accommodating 34 to 68 people simultaneously. A hostel was created.
In order to organise a business and invite clients, one of the accused advertisements on travel, communication and advertisement platforms on the internet.
Between March 2020 and April 2021 one of the accused was engaged in unregistered business activities. Illegal activities included systematic financial operations and tax avoidance. All of this caused considerable losses to the Latvian state budget.
During this period of time one of the accused, knowing that disallowed reconstruction was performed at the real estate property owned by him and that an illegal hostel was established there, did not comply with regulations regarding fire safety within his owned property on Merķeļa Street 8 in Riga.
On 28 April 2021 a fire broke out in one of the room of the hostel, killing nine people.
The fire destroyed property worth more than EUR 5 500 owned by the hostel’s tenants. The roof of the building where the hostel was located was destroyed as well, causing damages worth EUR 47 788.
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