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Police requested prosecution for 50 insolvency administrators in past several years

Photo: State Police.
Since 2016, Latvia’s State Police have received several hundred reports regarding possible illegalities during insolvency processes. Over the course of the last two years, police have asked the prosecutor’s office to commence criminal prosecution of 50 insolvency administrators.

In 2016, State Police requested criminal prosecution of 16 criminal processes with 34 episodes against 16 insolvency administrators. Police requested commencement of criminal prosecution for fraud, embezzlement and document forging.
 

Last year, State Police requested commencement of criminal prosecution of 16 criminal processes with 45 episodes against 27 insolvency administrators. Police requested commencement of criminal prosecution for embezzlement, non-compliance with court ruling, persecution, interference with insolvency process, document forging, extortion in an organized group, money laundering, and abuse of official power.
 

In the first five months of 2018, State Police requested commencement of criminal prosecution in 7 criminal processes with 13 episodes against 7 insolvency administrators for embezzlement. Four criminal processes have commenced against insolvency administrators this year.
 

In 2016, State Police received 377 reports detailing possible illegalities in insolvency processes (290 in 2017 and 100 in the first five months of 2018).
 

Currently Corruption Prevention and Combating Bureau investigates one criminal process regarding bribery of an insolvency administrator. Last year, CPCB submitted one criminal process to the prosecutor’s office.
 

State Police notes that combating criminal activities associated with illegalities in the insolvency sector is one of the priorities for the law enforcement institution.
 

Police focus on information received about possible illegalities committed by certified insolvency administrators. The most common type of crimes committed by insolvency administrators include fraud, embezzlement and abuse of power.
 

Close cooperation has been established with the prosecutor’s office and Insolvency Administration to ensure better investigation of crimes and improve work capacity.
 

COCB explains that it is within its competence to investigate crimes associated with corruption, not all crimes insolvency administrators could be involved in. Corruption risks exist in any institution and for any official taking an important post. Because of that, risk management plays a major role in identifying and reducing risks, CPCB adds.
 

As it is known, last year’s detainment of insolvency administrators Māris Sprūds and Ilmārs Krūms earned a great deal of attention from media and authorities alike. Sprūds was released this February after he paid a bail of half a million euros. This is the largest bail amount paid in the history of Latvia’s judicial system. The amount was paid by his brother – businessman Kristaps Sprūds.
 

The prosecutor’s office accused Sprūds of extortion and money laundering. There are five other suspects in the case, including financier Jorens Raitums, who is also accused of money laundering. Ex-insolvency administrator Krūms is also among the accused.

BNN/LETA

11-07-2018
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