Global Banking Scandal Exposed: Unlikely Individuals and Entities Seize Control of Moldovan Banks

A comprehensive investigation has uncovered a massive banking fraud scheme involving seemingly unconnected individuals and entities that have gained control over three major Moldovan banks. The scandal, dubbed “the Billion-Dollar Theft,” has left experts stunned and officials scrambling to unravel the complex web of transactions.

How the Scandal Unfolded

A UK-based financial consulting firm, Kroll, was commissioned by the European Parliament’s LEFT group to investigate the matter.
According to the Kroll report, several Ukrainian and Russian citizens became unwitting shareholders in Banca Sociala, with some not even aware they owned shares in the bank. The documents used were fraudulent, and the true beneficiaries remain unknown.

Unibank: A Web of Entities and Politicians

Unibank’s shares were acquired by a number of entities, including politicians and businessmen linked to Ilan Shor, head of BEM’s administrative council.
Even former Moldovan President Petru Lucinschi was persuaded to buy shares in Unibank by Shor himself, who promised him significant profits.

Banca de Economii (formerly “Sberbank”), which was previously controlled by the state, was taken over by Shor Group through a series of share purchases and loans obtained from ABLV Bank in Latvia.
In 2016, ABLV Bank was fined €3.17 million for allowing offshore companies to illegally use bank accounts to lend to Moldovan entities.

Complex Network of Transactions

The Kroll report revealed that the banks’ shares were purchased with loans from UK Limited Partnerships, whose ownership is not transparent and have accounts at Latvian banks.
The investigation found a complex network of transactions, using predominantly UK Limited Partnerships with Latvian bank accounts to pay down existing loan exposure at one or more of the banks.

The True Nature of the Transactions

The true nature of the transactions and their beneficiaries were hidden behind a veil of secrecy, making it difficult for investigators to uncover the masterminds behind the scheme.
However, the report pointed out that Ilan Shor and individuals associated with him (Shor Group) played an integral role in coordinating large-scale fraudulent activities, suggesting he was one of, if not the only, beneficiary.

The Scale of the Fraud

The Kroll investigation identified at least 77 companies linked to Shor Group, which received approximately $2.9 billion in loans from the three banks between January 2012 and November 2014.
The report concluded that the majority of these loan funds were channeled through a coordinated money laundering mechanism in Latvia before being returned to Moldova or subjected to further money laundering schemes.

Consequences of the Scandal

The scandal has sent shockwaves throughout the banking industry, with officials scrambling to recover the stolen funds and bring those responsible to justice.
As the investigation continues, it remains unclear whether Shor acted alone or in concert with other unknown beneficiaries. One thing is certain: this brazen banking fraud scheme will be remembered as one of the most significant financial scandals in recent history.