Parex Bank gave Vladimir Putin’s friend $111 million UPDATED

Here is an article about an interesting transaction that Parex Bank booked as a “loan.”

Parex transferred $111 million to Vladimir Putin’s good friend Eduard Khudainatov in 2006.  Apparently, there was no collateral.  The auditors from Ernst & Young must have known about this.

Now in 2012, Khudainatov refuses to pay the money back.  The entire loss will be suffered by Latvian taxpayers.  Nobody is being prosecuted, as usual.

UPDATE:  A new article has been added below with more details.  An amazing quote is included from the Reverta lawyer, speaking about Parex Bank, “During change of ownership in 2008, the former shareholders stole certain documents pertaining to key bank deals with Russian customers.”  The implication is that this “loan” money has been stolen and documents have been stolen to protect the thieves and the EBRD lied to the world when it claimed in 2009 that Parex Bank was a wonderful investment for taxpayers.

pdf snapshot of Pietiek article from 18 March 2012:

Putin loan

link to article, unless it has been censored by the Latvian authorities:

http://www.pietiek.com/raksti/parex_no_putinam_pietuvinata_uznemeja_strukturas_grib_piedzit_100_miljonus

pdf snapshot of BNE article from 12 November 2012:

www-bne-eu

link to article, unless it has been censored by the Latvian authorities:

http://www.bne.eu/storyf4214/Latvias_bad_bank_gunning_for_Rosneft_deputy