EBRD openly criminal

The European Bank for Reconstruction and Development is funded by 65 countries with a mission of fostering transparency and democracy in 30 countries.  From 2009 to 2014, the EBRD was caught running a scam with the Latvian government to temporarily cover-up the disappearance of the assets of Parex Bank.  The government claims that Parex collapsed because of the United States and Sweden, however the real recipients of the disappeared assets were likely Russian oligarchs and Latvian politicians.

From 2009 to 2013, the EBRD insisted that it really bought Parex shares and denied rumors that the privatisation was planned to be reversed by a secret guarantee (‘put option’) in 2014.  When the Latvian government did reverse the privatisation in 2014, proving that the EBRD was lying and the privatisation was a fraud, then the EBRD became silent.

However now something amazing has happened.  The EBRD had admitted on its own website that it is offering a fraud service!  This webpage states that the EBRD will buy shares in a company if the seller guarantees to reverse the investment later!  There is only one reason why a seller (for example a national government) would effectively pay the EBRD to temporarily claim to be owner of shares.  This reason is fraud!  Such transactions are completely illegal since they mislead creditors about the true value of the shares, which for a corrupt and looted government company is usually zero.

We wonder how many of the EBRD’s 30 countries currently have false financial statements because of this racket.

EBRD webpage:

http://www.ebrd.com/work-with-us/project-finance/equity/direct-equity.html%20

pdf in case the EBRD takes down the webpage:

ebrd put option

Oligarchs Kargin and Koval still at it UPDATED: Boiko

The collapse of Latvian and Estonian payday lender MiniCredit shows that banking oligarchs Valery Kargin and Dmitri Koval are still at it, not slowing down their activity even after Kargin’s Parex Bank was revealed as a pyramid fraud and then fraudulently bailed out by the corrupt Latvian government.

Apparently Kargin and Koval worked with Rolands Petersons of PrivatBank, which was also a pyramid fraud, to license MiniCredit in Latvia and Estonia and amazingly given their histories were granted licenses.

They then opened a bank account at Citadele Bank, which is a successor to Parex and still apparently controlled by Kargin since his top offshore banker Valery Hudorozhkovs is still there.

A large amount of money was somehow run through MiniCredit’s account and then disappeared.  Some of this was presumably from low-income clients with payday loan accounts.  And perhaps some of it was from Russians running money through the accounts for laundering purposes, given the size of the withdrawals relative to the size to the company’s legitimate activities.

An interesting detail of this case is about Koval, whose Saules Bank of Latvia was caught laundering money although authorities never bothered to prosecute anyone.  Saules Bank is today merged into Rietumu Bank which is also a money launderer.

Just after Parex whistleblower John Christmas gave details of massive frauds at Parex to Latvian authorities in 2005, who ignored the information, Koval invited Christmas to meetings to discuss establishing a new bank in Latvia to serve Koval’s clients, who he described as Jewish billionaires in Moscow.  Koval wanted Christmas to be a front for the bank, making it seem like an American bank even though the clientele would be Russian.

Kargin and Koval don’t need Christmas to be their American front anymore since they found someone better.  Supposedly former Fed chief Paul Volcker is the owner of Citadele today, although we doubt Volcker has any clue what is happening there.

We continue to hope the EU and US authorities will wake up and realize that the Latvian government is running a racket to help Russians steal money from Europeans, Americans, and especially Latvians.

http://www.lsm.lv/en/article/economics/economy/payday-lenders-strange-transactions-uncovered-in-estonia.a221430/

UPDATE:  Oleg Boiko, also from Parex Bank and therefore also being protected by the European Bank for Reconstruction and Development, is also still active providing high-interest loans to desperate poor people.  http://theblacksea.eu/malta-files/article/en/cash-loans-czar-maltese-tax-escape-plan

Privatbank nationalized, a repeat of the Parex saga?

The Ukrainian government announced on December 18th that it nationalized Privatbank.  According to the Kiev Post, the reason is because 80% of the loan portfolio is insider loans.  In other words, the bank was a pyramid fraud and the assets were stolen.  Now, Ukrainian taxpayers are expected to repay the bank’s deposits.

The numbers seem to indicate that the Ukrainian national debt could double from this.  It’s a repeat of the nationalization of Parex Bank which doubled Latvia’s national debt.

Privatbank maintains a subsidiary in Latvia that is specialized in money laundering.  Latvia is an excellent location for money laundering because (1) it is in the European Union and (2) the government is 100% corrupt and never enforces money laundering laws.

The big money laundering oligarchs, Valery Kargin and Viktor Krasovitsky of Parex and AB.LV in Latvia, Ilan Shor with several banks in Moldova, and Ihor Kolomoisky with Privatbank in Ukraine and Latvia, all appear to be friends with each other because often their money laundering schemes are done in cooperation.  They have now successfully destroyed the economies of all three countries.

We wonder when the international community will stop bailing out these frauds and instead force Latvia/Ukraine/Moldova to put these oligarchs in jail and take back the stolen money?

UPDATE: Government nationalizes PrivatBank, guarantees deposits

 

Rubess: Parex/Citadele “no longer criminal”

Baiba Rubess, a long-time board member at Citadele Bank, has declared to exiled and terrorized Parex/Citadele whistleblower John Christmas that Parex/Citadele is “no longer criminal.”  This is interesting because Parex/Citadele never announced that they were criminal in the first place and nobody ever got prosecuted when over a billion euros disappeared and the bank was caught intermediating huge bribes (Daimler, Solaris, Alstom, Kempmayer, TeliaSonera, etc.).  In fact, the government has been telling the voters since 2008 that the collapse of Parex and the national economy was caused by “Sweden.”

If Parex/Citadele wants to change from being a “criminal organization” to being a lawful organization, then it will have to take certain steps: (1) admitting that all Parex annual reports were materially fraudulent from at least 1998 to 2008, (2) admitting that the EBRD bailout in 2009 was fraudulent, (3) admitting that all Citadele annual reports from 2010 onwards have been materially fraudulent because the EBRD transaction was not explained truthfully.

Prosecutions for all Citadele directors would be an easy straight-forward slam-dunk since, following a five-year cover-up, the prime minister admitted in 2014 that the 2009 EBRD/Parex/Citadele deal was fraudulent.  However the prosecutors are instead focusing on their efforts to put Parex/Citadele dissident Ilmars Poikans in prison to punish him for being honest.

The Latvian media speculates that Ms. Rubess might become the head of Rail Baltic, in keeping with government policy of appointing Oligarch loyalists to important positions.

We at LawlessLatvia are still wondering when anyone in Washington or Brussels will wake up to what is happening in Latvia.

 

SEC nails Malta broker linked to Kargin, Parex, Citadele, M2M

Malta licensed broker Exante has been caught by the S.E.C. in a massive fraud scheme.  Although Exante is licensed in Malta, it has an office in Latvia and some employees are formerly from Parex Bank.  Exante has strong relationships with two Parex successor banks Citadele Bank and M2M Bank and employees boasted of meetings with Parex Oligarch Valery Kargin.  The Latvian government is responsible for this new fraud scheme because the Latvian government refused to prosecute Parex for many previous fraud schemes.

http://www.maltatoday.com.mt/business/business_news/56060/maltabased_hedge_fund_involved_in_100_million_fraud

Paul Volcker is the new Jimmy Carter?

From 1972 to 1991, rogue bank BCCI ran a racket using the corrupt government of Panama for protection as it provided deposit services to crooks from Colombia.  BCCI convinced former American president Jimmy Carter to promote them by tricking him that they were not corrupt and they were helping to develop the Third World.  When the bank was shut down in 1991, it was discovered that all of its annual reports signed by Big Four auditors were fake and actually the bank was never profitable because it was booking “loans” which were transfers to crooks who never intended to repay.

Starting from 1993 and still continuing today, rogue bank Parex/Citadele is running a racket using the corrupt government of Latvia for protection as it provides deposit services to crooks from the former Soviet Union.  Citadele has convinced former Federal Reserve chairman Paul Volcker to promote them, and amazingly he has agreed even though the Latvian Prime Minister has (after fraudulently winning the October election) admitted that the Latvia/EBRD/Parex bailout in 2009 was a deception with a secretly reversible share transfer.

How large with the fraud grow?  How many millions of people’s lives will be ruined?  Will Parex/Citadele/Latvia/Volcker be able to surpass the old record set by BCCI/Panama/Carter?

http://www.marketwatch.com/story/ex-fed-chairman-volcker-buys-stake-in-latvian-bank-2014-12-11-64855141

Eurostat confirms Dombrovskis’ fraud

Eurostat has written a letter confirming that Valdis Dombrovskis’ deal to sell Parex Bank stock to the EBRD in 2009 was a fraud.  The “sale” was actually a “loan” because Latvia must buy back the stock.  The Eurostat letter indicates another fraud also:  when Latvia gave free Citadele stock (the EBRD bought Parex stock, not Citadele stock) to the EBRD this should have been recorded as an expense.  Latvia is required, according to the illegal deal, to buy back the Citadele stock for an unknown price at an unknown time.  However, Latvia made the deal “confidential.”  We thought “confidential” was for military secrets.  How can the national debt be “confidential” from voters, taxpayers, and creditors?  We hope the next government will repudiate the debt and sue the EBRD to take back the Citadele stock.

Eurostat letter September 2014

UPDATED: Bloomberg picks up story!

UPDATE – 26 AUGUST 2014 ON BFW (BLOOMBERG SUBSCRIBER SERVICE):

Dutch Lawmaker Asks Eurostat to Review Latvian Accounts
2014-08-26 11:29:53.256 GMT

By Corina Ruhe
Aug. 26 (Bloomberg) — Financial statements for Latvia are non-compliant with Eurostat standards, Pieter Omtzigt, Dutch member of parliament for the Christian Democrats, says in letter to Eurostat.
* Says Lavia “sold” shrs of nationalized Parex Bank to
European Bank for Reconstruction and Development in 2009
with secret “put option”, requiring Latvia to buy back the
shrs in future, guaranteeing unknown profit to EBRD at
expense of Latvian taxpayers
* Says money for Parex was only a loan effectively
* Says put option was major breach of European standards
* Says Eurostat obliged to instruct Latvia to restate
financial statements back to 2009; to include amount of put
option as debt
* NOTE: Latvia plans to sell Citadele this year
* NOTE: Dijsselbloem Says EBRD Has Put Option on Citadele,
Reverta Stake

For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

–With assistance from Aaron Eglitis in Riga.

To contact the reporter on this story:
Corina Ruhe in Amsterdam at +31-20-589-8526 or cruhe@bloomberg.net To contact the editors responsible for this story:
Fergal O’Brien at +44-20-7330-7152 or
fobrien@bloomberg.net

ORIGINAL POST – 10 JULY 2014:

We have been sending emails to Bloomberg for years that the EBRD/Latvia/Parex bailout was fraudulent because of a secret put option, and finally they have picked up the story!  This is one of the largest frauds of the European Financial Crisis, and is even larger if incoming rumors are true that the EBRD has committed similar frauds in other countries.

http://www.businessweek.com/news/2014-07-10/dijsselbloem-says-ebrd-has-put-option-on-citadele-reverta-stake

 

Dutch articles about EBRD Latvia fraud

Hurray for the Dutch media!  Maybe in the future Latvia can have a free media like this.

Articles about the 26 August 2014 letter from MP Pieter Omtzigt to Eurostat:

http://925.nl/archief/2014/08/26/breek-vragen-letland

http://politiek.thepostonline.nl/2014/08/26/eurostat-werkt-mee-aan-boekhoudfraude-bij-letland/

http://www.dagelijksestandaard.nl/2014/08/omtzigt-wil-dat-eurostat-schuld-letland-herberekent

Dutch journalist David Bremmer published an article in both Algemeen Dagblad (15 August 2014) and Het Parool (16 August 2014).

https://blendle.nl/i/ad/wordt-letland-het-nieuwe-griekenland/bnl-adn-20140815-3448345/r/sh-em

Dutch journalist Jean Wanningen published an article about the Latvia/EBRD/Parex fraud.

http://www.dagelijksestandaard.nl/2014/08/wetteloosheid-letland-is-topje-van-de-ijsberg

Dagelijkse Standaard 15 Aug 2014

Dagelijkse Standaard 15 Aug 2014 Eng

 

Previously, Dutch journalist Arno Wellens published a series of articles about the Latvia/EBRD/Parex fraud.

http://925.nl/archief/2014/07/15/kredietcrisis-zelfs-dijsselbloem-lijkt-het-niet-meer-te-snappen

925 article 15 Jul 2014

http://925.nl/archief/2014/01/07/letse-banken

925nl7jan2014

925nl7jan2014eng

http://925.nl/archief/2014/01/08/baltische-banken-deel-2

925nl8jan2014

925nl8jan2014eng

http://925.nl/archief/2014/01/16/nomura-hielp-letland-probleemschulden-te-verhullen-baltische-ban

925nl16jan2014

925nl16jan2014eng

 

UPDATED: Chris Gwilliam fled from Latvia

The Latvian government hired Chris Gwilliam to run Parex Bank and then Reverta resolution company.  His objective seems to have been covering-up the fact that Parex was a fraud and the bailout of Parex was also a fraud.  He claimed that his objective was to recover as much money as possible for taxpayers, but obviously he did not do that because the Latvian government did not sue and prosecute Valery Kargin, Viktor Krasovitsky, and Ernst & Young.  A contact informed LawlessLatvia of Gwilliam’s secret departure in December.  That contact was afraid for his life and refused to repeat the story when asked.  Gwilliam’s departure has been completely censored from the media.  Gwilliam is featured in the 2013 LatviavEBRD Youtube video.

UPDATE:  We are not certain why Gwilliam fled from Latvia, however we speculated it was because of massive money laundering and fraud at Parex.  Now, a credible source has given a different explanation.  The source claimed to know that Gwilliam was questioned by the United Nations Security Council about arms sales from Belarus through Latvia to Togo and Ivory Coast.  According to the source, Parex was “aiding and abetting the contraband.”  Remember: Parex (now named Citadele and Reverta) is fraudulently funded by the EBRD using your tax money.