VIP Avia and Parex Bank

Parex Bank used to have a subsidiary called VIP Avia.  In the early 2000’s, consultant ABN AMRO advised Parex not to have this frivolous subsidiary, the function of which was providing private jets for the Parex oligarchs.

Parex did not react by selling the subsidiary.  Instead, Parex changed its balance sheet to show VIP Avia as a loan to an unrelated party instead of a subsidiary.

This reaction was illegal.  However, Latvian authorities refuse to prosecute the responsible people from Parex and Ernst & Young.

John Christmas blew the whistle on this fraud in 2004/2005.  Dienas Bizness newspaper published an article about this fraud in 2009.

pdf snapshot from 18 March 2012:

DB VIP Avia

link, if not yet censored by Latvian authorities:

http://www.db.lv/citas-zinas/vip-avia-ierosinats-arpus-tiesiskas-aizsardzibas-process-134233