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 [email protected] To contact the editors responsible for this story:
Fergal O’Brien at +44-20-7330-7152 or
[email protected]

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.

EBRD Fraud: Media Coverage

As more articles appear in the media about the EBRD/Latvia put-option fraud, it will be more difficult for EBRD employees, police, regulators, and auditors to pretend they don’t know about it.  Also, propaganda journalists who have been writing that the Latvian Crisis was caused by “Sweden” and has already be solved by “austerity” must get uncomfortable when the fraud evidence spreads.  Here are media links with the unpleasant truth:  the Latvian Crisis, which is still growing, is being caused by an illegal effort by the Latvian government and EBRD to cover-up fraud at KGB-linked Parex Bank.

“LSM.LV” 11 July 2014

http://www.lsm.lv/en/article/economics/economy/ebrd-stake-in-parex-included-put-option.a91151/

LSM 11 July 2014

“Baltic Course” 26 June 2014 by John Christmas

http://www.baltic-course.com/eng/direct_speech/?doc=93290

Baltic Course 26 June 2014

“Pagina99.it” 5 May 2014 by Mauro Caterina

http://www.pagina99.it/blog/5456/Lettonia-sotto-inchiesta-per-l-affaire.html

“Pagina99.it” 13 January 2014 by Mauro Caterina

http://www.pagina99.it/news/economia/3134/la-Lettonia-nell-euro–.html

Pagina99Italian

Pagina99English

“Typically Spanish” 19 November 2013 by Michael Walsh

http://www.typicallyspanish.com/spain-news/sol/Estepona.shtml

Typically Spanish article

“Lettonia:  storia di una frode europea” documentary video 10 October 2013 by Mauro Caterina

http://www.youtube.com/watch?v=xnTfb4yDBY4

“Rosvesty.ru” 9 September 2013 by Tom Peel

http://rosvesty.ru/2125/english-version/9122-latvian-dissident-narrates-new-youtube-video-about-the-ebrd/

Rosvesty article

“Il Manifesto” 21 April 2013 by Mauro Caterina

http://www.ilmanifesto.it/area-abbonati/ricerca/nocache/1/manip2n1/20130421/manip2pg/06/manip2pz/339238/manip2r1/lettonia/

Il Manifesto 21 April 2013

“Lithuania Tribune” 1 March 2013 by John Christmas

http://www.lithuaniatribune.com/30931/the-ebrdparex-bank-mystery-widens-201330931/

Lithuania Tribune Mar 2013

“Lithuania Tribune” 12 November 2012 by John Christmas

http://www.lithuaniatribune.com/18678/the-ebrdparex-bank-mystery-201218678/

Lithuania Tribune Nov 2012

New video: Latvia EBRD Fraud 2013, still getting larger!

The Latvia EBRD “put option” fraud, committed in 2009 for the purpose of covering up the truth about the collapse of Parex Bank, is still getting larger.  It was bad enough that the EBRD destroyed the Latvian economy to protect two KGB-linked Oligarchs.  But now the EBRD threatens to undermine the European economic recovery by helping Latvia to enter the euro currency with falsified financial statements.  EBRD and Parex employees have already informally confessed to the fraud.  When will the EBRD make a full public confession?  Please share to fight corruption!

http://www.youtube.com/watch?v=APZ-E-X0Cow

 

 

2012 video about the EBRD/Parex fraud

Why is the Media ignoring this clearly-evidenced, multi-billion-euro fraud that threatens to bankrupt a European Union country?

                               Parex Bank

http://www.youtube.com/watch?v=IBiYCPfIWFA

UPDATED WITH EBRD CONFESSION

New evidence has emerged that the EBRD purchase of Parex Bank shares from the Latvian government was a fraud, probably committed for the dual purpose of covering-up Oligarch crimes and defrauding the IMF, EU, and World Bank.

Here are quotes from the Parex Bank 2009 annual report:

“Among Parex banka’s top priorities in 2009 was concluding the deal with the European Bank for Reconstruction and Development about its involvement in the shareholder structure, signalling about the vitality and development potential of the institution.”

“In January and February 2009, the EBRD performed a complete due diligence of Parex banka”

“On 7 April 2009, the EBRD Board of Directors approved a financial package for Parex banka, including the acquisition of 25 percent plus 1 of ordinary shares of Parex banka for LVL 59.5 million (EUR 84.2 million) and a subordinated loan of EUR 22 million.”

“On 16 April 2009, the Share Purchase Agreement was signed providing that following the increase of equity capital the EBRD will purchase 57,506,825 ordinary shares comprising 25 percent and one share of Parex banka’s equity capital.  On 23 July 2009, the European Bank for Reconstruction and Development signed the subordinated loan agreement with Parex banka.”

“Finalising the deal, on 3 September 2009, 25 percent and one share of Parex banka were transferred from the Privatisation Agency to the European Bank for Reconstruction and Development.  In this initial transaction, the EBRD acquired 51,444,325 ordinary shares with voting rights.  As part of a future capital increase at Parex banka, the EBRD plans to purchase a further 6,062,500 shares, thus maintaining its stake of 25 percent and one share.”

“The signed agreement indicates not only the stabilisation of the Latvian financial system and gives a positive signal about the investment environment in Latvia, but also evaluates Parex banka’s future development potential and increases the Bank’s value.”

On 29 October 2009, the Latvian government put more capital into Parex Bank.  The EBRD did not increase its “investment” and therefore the EBRD ended 2009 with 22% rather than 25% of the shares.

In 2010, Parex Bank was split into a New Bank (Citadele Bank) and a Resolution Bank (Reverta).

The 2011 Youtube video titled “Latvia versus EBRD” informed the public that the EBRD refused to communicate with the Parex Bank whistleblower (John Christmas) when supposedly conducting “complete due diligence” on the 2009 purchase of Parex Bank shares and that the EBRD already knew that Parex Bank was worthless and criminal prior to purchasing the shares.  The purchase was apparently carried out not because of “vitality and development potential” as stated in the Parex annual report, but rather because of a secret, and therefore illegal, put option revealed in the leaked Nomura document.

The 2012 Youtube video titled “Latvian Financial Crisis – the multi-billion-euro Parex/EBRD/Ernst&Young fraud” repeated the same information and received many more views because it was professionally produced.  As of today it has over 119,000 views, making it one of the most popular videos ever about Latvia.

Finally, a journalist has begun to ask questions to Reverta and the EBRD about the crimes.  This journalist wrote two emails addressed to the whistleblower evidencing more frauds.

26 October 2012:  “I’ve heard from sources that it was normal for the Kargins and Krasovitskis to take a personal cut / kickback from the loans the bank made, is this something you heard about when you worked there?  According to the Reverta lawyers, K and K also destroyed much of the documents pertaining to loans before nationalization.”

The EBRD apparently did not conduct “complete due diligence” or else it would be aware that Parex had transferred a huge amount of money to cronies, booked the transactions as “loans,” and then destroyed the documents so that the “loans” would not have to be repaid.  Or else, the EBRD did conduct “complete due diligence” and therefore already knew this but anyway co-conspired with the Latvian government to cover up the crimes.

4 December 2012:  “The EBRD say they cant comment on the specifics of the transaction (taking a stake in Parex) but say they sometimes use put options.  They also say that the 22% figure you mention refers to the stake in Parex bank they took, not the profit.”

Since, the EBRD refuses to deny that they have a put option on the Parex shares, we can conclude that they are guilty of fraud.  And, even worse, the EBRD claims to have committed the same fraud multiple times with different deals.

Regarding the 22%, they are referring to this quote from the leaked Nomura document, “Compensation of EBRD, 22%, Resolution Bank 2014E BV 38,164, Compensation for nominal investment 57,569.”  Now we know that the 22% number refers to the EBRD’s percentage stake.  The other numbers appear to be amounts in Latvian lats:  38,164,000 and 57,569,000.  What those numbers mean is still unclear.  The term “compensation” suggests that there is a “put option,” as stated earlier in the same report, because otherwise there would be no reason why the EBRD would receive “compensation” from the Latvian government.

The EBRD can be prosecuted in many jurisdictions for its crime.  Most obviously, prosecution could take place in London or Latvia.  But also, all of the 61 countries that fund the EBRD could commence prosecution.  The secret put option is a material fraud on (1) the EBRD financial statements, (2) the Republic of Latvia financial statements, and (3) the Parex Bank financial statements.  The scope of the crime in Latvia is already huge, and according to the EBRD the same fraud has been committed in other deals as well, thus indicating an absolutely enormous criminal racket affecting millions of people in multiple countries.

Let’s hope law enforcement somewhere will take action.  The EBRD has lost its “plausible deniability” excuse by sending an email in which they confess that they know about their fraud.  They have not been covering their eyes and plugging their ears carefully enough.  The Latvian people deserve large compensation from the EBRD and the Parex auditors.

EBRD fraud explained in 2011 video

This is a video that appeared on Youtube in October 2011.

The European Bank for Reconstruction and Development (EBRD) committed a multi-billion-euro fraud against the whole world by conducting a fake purchase of Parex Bank stock in 2009.

http://www.youtube.com/watch?v=jlqoTPM2LA4

 

SFO Director Richard Alderman signed false letter to Parex Bank whistleblower

The British Serious Fraud Office (SFO) refuses to take action regarding the multi-billion-euro fraud crime committed by the European Bank for Reconstruction and Development (EBRD) with regard to Parex Bank stock.

The first item below is a letter from the SFO to Parex whistleblower John Christmas and is signed by SFO director Richard Alderman.  The letter claims that there was no EBRD fraud, even though Christmas’ original letter contained clear evidence of a huge fraud.

Christmas requested clarification from the SFO.  The second item below is an email from the SFO to Christmas.  This second reply contradicts the first reply.  The reason why the SFO will not take action is because they don’t want to get involved, even though the EBRD is based in London and therefore is in the jurisdiction of the SFO.

That is a shame, because the refusal of the SFO to act only means that the Latvia/Parex fraud bubble continues to grow with the ironic result that thousands of Latvian people are forced to move the United Kingdom every month as economic refugees…

letter from SFO

email from SFO