Citadele privatization also fake!

LawlessLatvia has been alerted of yet another massive EBRD fraud crime against the people of the European Union and for the benefit of Vladimir Putin. The link below is a European Commission Eurostat report dated 23 April 2018 and it seems that nobody noticed the report when it was published. Either that or corruption prevented this fraud revelation from appearing in the media.

As a quick review of earlier events: (1) a whistleblower gave details to EY that Parex Bank was a pyramid fraud in 2004 and EY refused to act, (2) the same whistleblower gave the pyramid fraud info to Latvian officials in 2005 who also refused to act, and Parex chased the whistleblower out of Latvia with murder threats, (3) PM Godmanis gave a pile of money to Parex in 2008 and lied that he was saving Latvia from the United States, (4) PM Dombrovskis gave a pile of money to Parex in 2009 and lied that he was saving Latvia from Sweden, (5) meanwhile more and more evidence confirmed that Parex was a pyramid fraud and was looted by Putin’s Tambovskaya Mafia.

The EBRD got involved in 2009, joining a criminal conspiracy with PM Dombrovskis to trick Latvian people that Parex wasn’t looted by the Mafia and to assist his disinformation campaign to blame Sweden. The EBRD announced that it bought shares in Parex because they were valuable, however later the fake investment was reversed and we discovered that actually Dombrovskis paid the EBRD to pretend to buy the shares.

Now, with this new absurd report from Eurostat, we can confirm what we have suspected all along – the Citadele privatization to the EBRD in 2010 was also completely fake! And, this second cover-up fraud is still continuing now in 2018! It was another fraud designed to dupe and rob Latvian citizens and creditors. And once again, Eurostat knows about it however is doing nothing to stop it! The only people who benefit are puppet Dombrovskis and his masters from Putin’s Oligarchy.

In this report, Eurostat and EY admit that they know that the EBRD didn’t really buy Citadele shares from Latvia, but instead Latvia is paying the EBRD to pretend to own shares presumably to dupe Citadele creditors and counterparties, especially its correspondent banks. The 2010 Citadele Bank annual report states that the EBRD paid 35 million euros to purchase shares and this 2018 Eurostat report says Latvia secretly agreed to pay the EBRD 88 million euros to pretend to buy those shares. Latvian taxpayers will get robbed of 53 million euros. Of course the secret reversal wasn’t mentioned in the Citadele annual report because it is an illegal fraud.

This brings up many interesting possibilities for future economic disasters in Latvia. When Parex was split into ‘good bank’ Citadele and ‘bad bank’ Reverta back in 2010, the government said that 50% of Parex assets were bad and would go to the bad bank. That was a big change from 2009 government and EBRD statements that the Parex assets were good.

We knew that at least some of the supposedly ‘good’ assets that went to Citadele were criminal, fraudulent, and therefore ‘bad.’ For example, Parex made loans to Rigas Satiksme that funded bribery by Solaris and Daimler that was revealed in the US v Daimler case. And, Parex made loans to Latvenergo that funded bribery by Alstom that was revealed in the Switzerland v Alstom case. Rigas Satiksme and Latvenergo have no obligation to repay these loans, however haven’t repudiated the debts so far because of the government policy of covering-up rather than prosecuting corruption.

Now we must wonder – were any of the Parex assets really ‘good’? Since nobody would buy shares in Citadele, and Latvia had to pay the EBRD to pretend to buy that bank, perhaps Citadele was already looted at inception? And, what about the Ripplewood investors from the USA? Were they duped and robbed by Latvia and the EBRD? Did Latvia lie to Ripplewood that the EBRD invested even though the EBRD didn’t really invest? Or, maybe Ripplewood is part of the scam? Maybe Latvia also secretly paid Ripplewood to pretend to invest to make the bank seem ‘American’ even though its function is still offshore banking for Russia and Ukraine provided by the same money launderers who cleaned out Parex?

https://ec.europa.eu/eurostat/documents/1015035/8054610/Final-findings-EDP-dialogue-visit-LV-7-9-June-2017.pdf

EY again! Unbelievable…

Think of Ukraine.  More corrupt than Latvia?  Maybe not.  When undeclared insider loans caused Ukraine’s Privatbank to collapse, the government commenced a lawsuit against PWC to recover $3 billion.

In Latvia, the government could have sued EY for $1 or $2 billion for the Parex collapse.  A whistleblower handed information about undeclared insider loans to EY a few years earlier and those same loans were some of the worst assets at Parex.

EY then ‘audited’ both Parex and ABLV’s annual reports for 2008 which was the year when the government transferred money to Parex to help a lot of Parex clients withdraw their deposits and re-deposit the money at ABLV.  Maybe some assets or equity was also shifted around, who knows?

But here is the crazy new story – EY has been appointed to audit the liquidation of ABLV!  Latvia isn’t suing EY and instead is giving them access to billions more dollars!

Corruption in Latvia has reached a point where it is just a game between the corrupt bankers and corrupt administrators to divide up loot, while regulators and prosecutors do nothing and pretend they don’t know what is happening.  Anyone interested in investing here?  Ha ha.  Certainly not us, until the EU or US helps Latvia to arrest the perpetrators and put them in jail.

Baltic Rim Economies

You can’t read about the largest fraud racket in Eastern Europe in the Wall Street Journal, Economist, Bloomberg, Guardian, Financial Times, New York Times, or Washington Post.  They refuse to publish articles about EBRD support for Vladimir Putin’s money launderers.  However now you can read about it in Baltic Rim Economies!  BRE is a publication of the Pan-European Institute at the Turku School of Economics at the University of Turku in Finland.  Thanks for publishing!

pdf of article:

BRE May 2018

link to entire May 2018 edition:

http://www.utu.fi/en/units/tse/units/PEI/BRE/Documents/BRE_2_2018.pdf

 

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.

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