European Central Bank: idiots or criminals?

It’s been a big week for money laundering news from Latvia.  The US’s FinCEN blacklisted AB.LV Bank.  And, KNAB raided the home of Latvian central bank governor Ilmars Rimsevics.

The Media has missed a larger story however.  What is going on at the European Central Bank (ECB)???

After the bailout of Parex Bank, which has been confirmed fraudulent, guess who started buying Latvian bonds?  The ECB did!  The ECB had full knowledge that the Parex bailout was a fraud and that therefore Latvia was also a fraud, and at the same time became the biggest ‘investor’ in the fraudulent bonds issued by Latvia.

And, to make matters even worse, the ECB allowed Latvia to enter the euro currency with full knowledge that Latvia was a fraud.

Now this week we can add two new embarrassments.  Everyone in Latvia has known for many years that Parex used to and ABLV still does launder Russian Mafia money.  But somehow the ECB doesn’t know, even though the ECB is the regulator for ABLV.  How can two million Latvians know something however the regulator doesn’t?

Also, the ECB must know that Rimsevics is corrupt and working in the interests of Parex and ABLV.  For example, after Rimsevics organized the fraudulent Parex bailout, he was caught by whistleblower ‘Neo’ paying a large secret bonus for himself using the small bit of Latvian taxpayer money that hadn’t already been stolen.  And then, prosecution commenced against ‘Neo’ instead of against Rimsevics, at the request of ABLV.

Rimsevics is on the council of the ECB, making important decisions for all of Europe.  And somehow the ECB doesn’t know he is corrupt?  The ‘Neo’ information has been in the newspapers for years.  We have been sending letters to the ECB for years and they never woke up.

The fact that the US had to take action against ABLV because the ECB was sound asleep is a huge embarrassment to the Europe and especially the ECB and we hope the Media will publicize this problem.

UPDATED: Latvia versus Moldova

In 2008, when the public discovered that $1 bln disappeared from Parex Bank of Latvia, the government fought long and hard to cover-up for the Oligarchs.  The government chased the first whistleblower into exile and started a “show trial” prosecution of the second whistleblower, at the request of offshore bank AB.LV.  Many accounts from Parex moved to AB.LV when Latvia and the EBRD bailed out Parex in what was later revealed to be an Enron-style cover-up featuring a secretly reversible share transfer designed to help Latvia temporarily overstate income and understate debt while actually increasing the total bailout expense to taxpayers.  In 2015, when the public discovered that $1 bln disappeared from three banks in Moldova, with the cash moving through AB.LV, Latvijas Pasta Banka, and Privatbank (Latvia), something different happened.  Moldova ordered an investigation (Latvia never investigated Parex) and the Speaker of the Parliament published the investigation on his blog (in Latvia the Prime Minister lied to voters that “Sweden” caused the crash).  Moldova is attempting to recoup the lost money, and the responsible Oligarch is under house arrest and expected to spend the rest of his life in prison.  Contrast this to Latvia where the government made no attempt to recoup the money and the Oligarchs are free enjoying life in their Jurmala palaces.  Maybe Latvia can learn something from Moldova?

investigative report from Kroll:

Kroll_Project Tenor_Candu_02.04.15


Yanukovych laundered through Latvia

Berzins Yanukovych

Ukraine 2014 is a repeat of Kyrgyzstan 2010 – a kleptocracy is overthrown by a violent revolution and we discover that the kleptocrats were using Latvian banks.

The article names the usual “dummy directors” from Parex Bank sister company International Overseas Services.  These directors have been involved in other gigantic crimes also, however Latvian prosecutors are not bothering them.  Instead, the prosecutors continue to threaten two whistleblowers with prosecution in order to dissuade future whistleblowers.

The European Union, United States, Russia, and Ukraine have been fully aware for 20+ years that the Latvian government is protecting a massive money-laundering racket.  However these governments have taken no action except to fraudulently provide more funding to the racket through the European Bank for Reconstruction and Development.

If you know anyone from the EBRD, please ask them why they are on the wrong side in Eastern Europe.


Whistleblower hero Poikans attacked by EBRD

The EBRD (funded with taxes from many countries) is helping the corrupt Latvian “justice” system to send whistleblower Ilmars Poikans to prison.  Poikans is a hero for exposing secret compensation paid to many people associated with Parex Bank after the EBRD fraudulently bailed-out Parex with our money.  Will the EBRD stand by and let this happen?  Or, will they confess to the clearly-evidenced cover-up?  Does the EBRD have any respect for law or ethics?  This excellent ReBaltica article speculates that ABLV is behind the prosecution.  Many offshore accounts from Parex were re-deposited at ABLV.

Latvian government to Oligarchs: Please bank in our country!

Since the early 1990’s, Latvia has been the offshore banking center for Russian, Ukrainian, and other CIS oligarchs.  In the beginning, oligarchs such as Grigory Loutchansky, Viktor Chernomyrdin, Yulia Tymoshenko, and Pavlo Lazarenko were making use of Latvian banks.

Now in 2012, the offshore business has increased, to the detriment of the Latvian, Russian, and Ukrainian people.  The offshore banks of Latvia are endorsed and/or funded by the following organizations:  Moodys Ratings, Fitch Ratings, S&P Ratings, Ernst & Young, PricewaterhouseCoopers, the European Union, the IMF, the EBRD, and the World Bank.

Latvian banks are permitted to branch freely throughout the European Union with no oversight from local regulators.

Here is a list of Latvian banks in June 2012 with notes on associated oligarchs:

(1) ABLV Bank – Offshore bank serving Russians and Ukrainians.  When the European Union bailed out Parex Bank, many deposit accounts moved here.
(2) Baltikums Bank – Offshore bank serving Russians and Ukrainians.
(3) Baltic International Bank – Offshore bank serving Russians and Ukrainians.  Linked to oligarchs Valery Belokon, Boris Berezovsky, Kurmanbek Bakiyev, Alexander Lukashenko.
(4) GE Money Bank – In process of being sold to Otkritie Financial Corporation of Russia.
(5) DNB Bank – Latvian retail bank.
(6) Swedbank – Latvian retail bank.
(7) Latvijas Biznesa Banka – Offshore bank serving Russians and Ukrainians.  Owned by Bank of Moscow, linked to Yuri Luzhkov.
(8) Norvik Bank – Former Lateko Bank.  Offshore bank serving Russians and Ukrainians.
(9) Latvijas Hipoteku un Zemes Banka – Government bank linked to Latvian oligarch Andris Skele.
(10) Expobank – Offshore bank serving Russians and Ukrainians.  Formerly named LTB Bank and formerly owned by MDM Bank.  Linked to Oleg Deripaska.
(11) SEB Bank – Latvian retail bank.
(12) SMP Bank – Formerly Multibanka.  Offshore bank serving Russians and Ukrainians.  Blacklisted by United States Treasury in 2005.  Linked to Arkady Rotenberg, Vladimir Putin’s judo partner.
(13) PrivatBank – Offshore bank serving Russians and Ukrainians.
(14) Regionala Investiciju Banka – Offshore bank serving Russians and Ukrainians.
(15) Rietumu Bank – Offshore bank serving Russians and Ukrainians.  Linked to Suleiman Kerimov.
(16) Trasta Komercbanka – Offshore bank serving Russians and Ukrainians.  Was involved in the Sergey Magnitsky money laundering case.
(17) UniCredit Bank – Latvian retail bank.
(18) Latvijas Pasta Banka – Spun off from Latvian Post Office and privatized to former owner of Lateko Bank.
(19) Citadele Bank – Offshore bank serving Russians and Ukrainians. Spun off from Parex Bank.  Funded by EU, IMF, World Bank, EBRD.  Linked to Oleg Boiko, Yuri Shefler.
(20) Rigensis Bank – Offshore bank serving Russians and Ukrainians.
(21) (not licensed anymore, but nobody being prosecuted)  Latvijas Krajbanka – Linked to Snoras Bank of Lithuania, Alexander Antonov, Vladimir Antonov, Oleg Deripaska.
(22) (not licensed anymore, but nobody being prosecuted) VEF Bank – Was blacklisted by the United States Treasury.  Linked to Leonid Reiman, Alisher Usmanov.

Here is the list from the Latvian regulator: