Sergey Magnitsky, Latvia, money laundering

Are you horrified by the murder of Sergey Magnitsky?  Are you disgusted by the involvement of Russian government officials in the related theft of hundreds of millions of dollars?  Please know that Latvian banks were involved.  The Latvian offshore banking system is funded by the EBRD, EU, IMF, and World Bank.  Why does the world tolerate this outrageous use of taxpayer money?

The attached letter details the movement of stolen money through the following Latvian banks:  AB.LV, Baltic International Bank, Baltic Trust Bank, Paritate Bank, Rietumu Bank, and Trasta Komercbank.  All have links with Parex Bank, and all used shell companies from the same “International Overseas Services” that was run by the former Parex chairman.  When half of the assets of Parex disappeared in 2008, the EBRD, EU, IMF, and World Bank bailed out the shell-company depositors with a loan that must be paid back by Latvian taxpayers.  A large part of the bailed out deposits were re-deposited at AB.LV.

Please read this letter from Brown Rudnick to the Latvian General Prosecutor regarding Latvian banks involved in the Sergey Magnitsky case:

Latvian Complaint signed FULL (2)

Hewlett-Packard, Russian Prosecutors Office

The United States announced its settlement with Daimler regarding bribes paid through Latvian banks to Latvian and Russian recipients back in 2010.  Germany followed up by announcing an investigation of Hewlett-Packard regarding bribes paid through Latvian banks to Russian recipients.

Now in 2012, Germany has announced that three former Hewlett-Packard managers have been charged with bribery.  The bribes facilitated the sale of computers to the Chief Public Prosecutor’s Office of the Russian Federation.

We can now understand why Russian prosecutors tolerate the enormous flow of Russian money through shell-company deposits held with Latvian banks.  The prosecutors themselves are receiving some of the money!

Latvian and Russian prosecutors refuse to prosecute the people involved in the Daimler case.  Therefore, it seems unlikely that they will prosecute the people involved in the Hewlett-Packard case.

When will the United States and European Union help the people of Latvia and Russia by blacklisting the offshore banks licensed in Latvia?

Here is the article from Business Week:

Highest incarceration rate, but no criminals in jail!

Latvian taxpayers have witnessed an incredible orgy of theft since Latvia regained independence in 1991, resulting in the total destruction of the national economy and the loss of a third of the national population:

(1) all state enterprises were privatized for miniscule prices to a small circle of oligarchs; the loss to taxpayers was billions of dollars

(2) all of the most desirable state properties were privatized for miniscule prices to political insiders; the loss to taxpayers was billions of dollars

(3) the largest bank in the country (notorious for its involvement in the Kempmayer, South Bridge, Alstom, Daimler and other corruption cases) was cleaned out by insiders; the loss to taxpayers was billions of dollars

Yet, nobody has gone to jail!  That’s right, from all of the crimes listed above, the number of perpetrators sent to jail was ZERO.

Does this mean the jails in Latvia are empty?  NO!

In fact, Latvia has the highest incarceration rate in the European Union.  Latvian officials say that most of these prisoners are in pre-trial detention.  In other words, the people in the jails were randomly picked up off the street and did not have trials.  Latvian officials say they are overburdened with work and therefore cannot have trials for the people who are in jail.

The officials certainly are overburdened with work.  They have been very busy giving enterprises and properties to the oligarchs and politicians!

The IMF, EU, EBRD, and World Bank should stop lending money to the Latvian government until the innocent are set free and the guilty are in jail.

Here is the link to Wikipedia: