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Lithuania: Multi-Million Euro Embezzlement Investigation

· 2 min read
John Kowala
AML Analyst

Ongoing Investigation into Šarūnas Stepukonis' Alleged Embezzlement​

Lithuanian law enforcement officials, in collaboration with the European Public Prosecutor’s Office (EPPO), are currently conducting searches in several unnamed companies as part of an ongoing investigation into the alleged embezzlement of millions of euros by a former partner of BaltCap Infrastructure Fund, Šarūnas Stepukonis.

Confirmation of Searches and Arrest Warrant​

The EPPO confirmed to BNS that searches were underway in "several companies in Lithuania." In a statement, an EPPO spokesperson said, "We can confirm that searches are being conducted today in several companies in Lithuania as part of the pre-trial investigation into this case." 1 They added that more information would be shared in due course, not to jeopardize the investigation's outcome.

Meanwhile, BaltCap Infrastructure Fund representatives denied any searches were taking place at the company’s headquarters.

Suspect Identified in Two Pre-trial Investigations​

The Vilnius City District Court issued a two-week arrest warrant for Stepukonis on Monday. 2 He is currently the primary suspect in two separate pre-trial investigations:

  1. Stepukonis is accused of misappropriating over €27 million in the first investigation.
  2. The second investigation, previously closed in 2022, was reopened last week following the discovery of a €3.9 million transfer from a Polish company to Stepukonis. The funds were allegedly for the sale of shares.

Both probes are being carried out by the Financial Crime Investigation Service (FNTT) and monitored by the European Public Prosecutor’s Office. A decision is currently being made on whether to merge these two investigations.

Implications for Lithuania's Financial Community​

Stepukonis is reported to have lost a considerable portion of the embezzled funds in a casino. The alleged embezzlement has sent shockwaves through Lithuania's financial community, sparking renewed debate on corporate governance and oversight within the broader business sector.

Updates from FNTT and EPPO​

FNTT Spokesperson Modesta Zdanauskaitė told BNS, "It's normal that various procedural actions are being carried out, including searches." Both the FNTT and EPPO are keeping tight-lips about the specific companies being searched and the nature of the evidence investigators are looking for but assure that updating the public will be a priority when appropriate.

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Footnotes​

  1. European Public Prosecutor’s Office, interview with Lithuanian news outlet BNS ↩

  2. Vilnius City District Court, arrest warrant for Šarūnas Stepukonis ↩