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

EBRD fraud explained in letter

This letter by John Christmas to the British Serious Fraud Office (SFO) explains a multi-billion-euro fraud crime committed by the European Bank for Reconstruction and Development (EBRD) against all of the people in the world.

Specifically, the letter explains the “put option” fraud when the EBRD bought Parex Bank stock from the Latvian government.

This fraud has been censored in the Latvian media.  Some attachments to the letter used to be at dissident website Kargins.com, but that was later censored by the Latvian government.

EBRD fraud letter

Riga Transportation, Solaris Bus, Dienas Bizness, Viktors Zakis

Dienas Bizness is one of the oligarch-controlled newspapers in Latvia.

To the credit of DB, they did publish a story about John Christmas’ 2004/2005 whistleblowing against Parex Bank.  However, they did not publish the story until 2007.

The story contains some details of the material fraud at Parex that related to the corrupt sale of buses from Solaris to Riga Transportation.

At the time of this story in 2007, Viktors Zakis was spokesperson for Parex.  He is quoted in the article claiming, falsely, that Christmas’ whistleblowing was investigated and was not truthful.  When Parex handed its liabilities to the Latvian taxpayers in 2008, Zakis became spokesperson for Riga Transportation.

When the United States Department of Justice confirmed that Christmas’ whistleblowing was truthful in its Daimler settlement announcement in 2010, the Latvian media went silent again.  DB refused to link the 2007 story to the 2010 USDoJ announcement.

pdf snapshot from 18 March 2012:

DB Riga Transportation

link, if not yet censored by Latvian authorities:

http://www.db.lv/citas-zinas/vairakus-gadus-censas-pieradit-nelikumibas-parex-204411?cp=1

 

Parex Bank and Solaris Bus fraud explained

It is a great mystery why nobody in Latvia (new managers at Parex Bank, auditors at Ernst & Young and PWC, raters at Moodys and Fitch, Latvian regulators, Latvian law enforcement, etc.) is able to prove that Parex Bank committed a material fraud crime when financing the sale of buses from Solaris of Poland to Riga Transportation since the proof only takes a few minutes using numbers from Parex Bank and Riga Transportation annual reports.

This bus sale included kickbacks, according to the United States Department of Justice.

This is an email written by John Christmas explaining the proof.

Most likely, this loan is now owned by Parex’s so-called “good bank” successor – Citadele Bank.  Obviously, Riga Transportation has no legal obligation to repay this loan and therefore Citadele should announce a 100% loss.

Proof of Parex Solaris fraud

Declaration by John Christmas, Parex Bank whistleblower

John Christmas was the whistleblower from Parex Bank.  He gave fraud information to Ernst & Young in 2004.  He gave fraud information to the Latvian government in 2005.  He was terrorized with threats and fled from Latvia.  Ernst & Young and the Latvian government ignored the information.

The Parex fraud grew much larger and caused the Latvian Financial Crisis in 2008.

Now in 2012, there still has never been any investigation of the whistleblowing by Latvian (or European) authorities even though the fraud occurred in Latvia (and Europe).

This is a declaration written by John Christmas in January 2010.  The declaration was written at the request of Varu Tautai.  A translation (with a few errors) used to be online at VaruTautai.lv.  Most of the information in the declaration has been censored in the Latvian media.

One note:  In January 2010 when the declaration was written, it appeared that the FBI and United States Department of Justice were not going to use the information that they received from Christmas in October 2007.  However, in April 2010 it was revealed that the information was used in the USA versus Daimler settlement.  The FBI was back in communication with Christmas immediately after the announcement of the settlement.

Declaration

EBRD subsidiary Parex Bank threatened whistleblower

John Christmas was told by representatives of Parex Bank that he can “never come to Latvia anymore” as recently as 2009. The implication is that the bank is threatening to murder or arrest the whistleblower if he returns to his home. Christmas has received many similar threats from many different people since the whistleblowing. Fortunately, this threat was recorded.

Parex was owned by the Latvian government and the European Bank for Reconstruction and Development in 2009. Christmas forwarded this transcript to the EBRD and they ignored it, just as they have ignored all of the other criminal information about their subsidiary.

Excerpts of the transcript and audio file are below, with commentary written by Christmas in capitals. In the beginning is a discussion between Christmas and a Latvian friend about his apartment. Even though Christmas is a Latvian citizen and this apartment is his home, he has not been there since 2005 because of repeated terror threats from Parex and absolute refusal by the Latvian State Police to investigate.

The threats are in boldface and appear toward the end of the transcript.

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BaFin, Deutsche Bank, Parex Bank

Parex Bank whistleblower John Christmas provided fraud information to the German regulator BaFin in May 2006.  BaFin gave the information to the Latvian authorities even though Christmas explained that they already had the information.

BaFin could have confirmed that some of the fraud information was true in a few hours.  However, BaFin chose to do nothing.  As a consequence, Deutsche Bank will lose millions of lats.  Also, German taxpayers are bearing some of the burden of bailing out Latvia.

The email below shows that BaFin received information about Parex from Christmas and gave the information to the Latvian authorities.  The article below shows that Deutsche Bank owned some of the 52.8 million lats (twice as many dollars) subordinated debt of Parex.

pdf of email from BaFin to Christmas:

BaFin email

pdf snapshot of Deutsche Bank article from 11 April 2012:

Deutsche Bank Baltic Course

link to Deutsche Bank article if the Latvian government hasn’t censored it yet:

http://www.baltic-course.com/eng/finances/?doc=25008&underline=dnb+nord&ins_print

Aivis Ronis slandered Parex Bank whistleblower?

This email seems to show that Aivis Ronis slandered Parex Bank whistleblower John Christmas to the Wall Street Journal in 2007.

Ronis used to be the Latvian Ambassador to the United States.  But, by 2007, he ran the Latvian-American Financial Forum.  LAFF was a lobbying group with a purpose of convincing the United States government not to blacklist Latvia’s Baltic International Bank.  Oligarch Valery Belokon of BIB is known for his close relationships with Boris Berezovsky, Kurmanbek Bakiyev, and Alexander Lukashenko.

Even though Ronis was supposed to be working for Valery Belokon of BIB, not Valery Kargin of Parex Bank, it appears that Ronis committed a slander crime against the Parex whistleblower for the purpose of stopping the WSJ from publishing a story about the frauds at Parex.  It is a shame that the story was stopped, because that story could have prevented the Latvian Financial Crisis by forcing Parex to close one year before the government bailout.

Did Ronis get prosecuted for his action?  No.  He got promoted!  First, he became Latvian Minister of Foreign Affairs.  Now in 2012, he is Latvian Transportation Minister.

Notice that the WSJ journalist, an expert on corruption in Russia and Ukraine, believes that Parex is a violent criminal organization.  In this email, he warned the whistleblower to “be careful.”

Latvian newspapers refuse to publish this email.  The email used to be on Kargins.com, however the Latvian government has censored that website.

Ronis email

Guntars Vitols of Parex Bank threatened whistleblower

In late 2005, John Christmas learned that the Latvian State Revenue Service (VID) would look at the Parex Bank fraud information.  This was great news, because the Latvian Prosecutors Office, Latvian financial regulator, Latvian central bank, Latvian Ministry of the Economy, and other government agencies refused to investigate.

Christmas knew that a senior person in the VID was the mother-in-law of the former President of Parex Asset Management, Guntars Vitols.  Vitols spoke often about how much he hated the liars at Parex, and therefore it seemed possible that he wanted revenge.

Christmas asked Vitols to tell what he knew about tax evasion (paying employee bonuses in unreported envelopes stuffed with American hundred-dollar bills) to the VID.  Christmas suggested going to the American FBI if the Latvian government did nothing.

Vitols apparently went to Parex and warned them that Christmas might go to the FBI instead of telling what he knew to VID.

Christmas received the warning from Jekaterina Ecina immediately afterward.  Parex had sent thugs to look for Christmas.

Fortunately, Christmas was outside of Latvia and therefore safe.  He reported the threats to the Latvian government with only one result:  Vitols contacted Christmas and said that Christmas should expect a phone call from a prosecutor who will explain that Christmas must renounce the whistleblowing or else get prosecuted.

A prosecutor did not call, however Vitols himself called back.  This time, Christmas was ready with a recording device.  Vitols tried to convince Christmas to sign a false confession that the whistleblowing was not true, threatening arrest by Interpol and prosecution in Latvia otherwise.

In the transcripts and recordings below, Vitols (acting as an intermediary for Parex Oligarch Viktor Krasovitsky and the Latvian Prosecutors Office) communicates this illegal threat to Christmas.

It is possible to confirm from the recordings that Vitols himself was witness to at least two of the material frauds at Parex.  He was witness to tax evasion (bonuses paid in envelopes).  And, he was witness to the unreported issuance of stock options (he said “stock agreement” once and “stock option” later).

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