Financial Crime World

Croatia Exposes Major Financial Fraud Scheme Involving INA Officials

Shocking Crackdown on Financial Fraud

Croatian authorities have arrested several high-ranking officials accused of embezzling millions of euros through a complex scheme involving fraudulent trade and money laundering. The suspects, including a former INA manager, his father, a prominent lawyer, and a business partner, were taken into custody in Zagreb, Split, and Šibenik counties on Saturday.

The Scheme

The criminal association allegedly sold gas from INA’s reserves to a small company owned by one of the suspects at an inflated price, then resold it to foreign customers for ten times the original amount. The group pocketed the profit, leaving innocent parties with financial losses.

Key Points of the Scheme:

  • Sold gas from INA’s reserves at an inflated price
  • Resold it to foreign customers for ten times the original amount
  • Pocketed the profit, causing financial losses to innocent parties

Unprecedented Measures Taken by Authorities

In an unprecedented move, the Office for the Suppression of Corruption and Organized Crime (USKOK) froze 813 million HRK ($108.66 million) deposited in 16 accounts across eight banks and six open investment funds. Additionally, the illegally obtained money was invested in real estate, which has also been blocked.

Measures Taken:

  • Frozen 813 million HRK ($108.66 million) in 16 accounts across eight banks and six open investment funds
  • Blocked illegally obtained money invested in real estate

Government Response

Croatian Prime Minister Andrej Plenković emphasized that blocking the funds will minimize financial damage to the country. The identities of the suspects remain undisclosed, but media reports suggest they include a former INA manager, his father, a lawyer, and a business partner.

Government Statement:

  • Blocking the funds will minimize financial damage to the country
  • Suspects’ identities remain undisclosed

INA’s Response

INA, a state-owned company majority owned by MOL Group and the Croatian Government, has distanced itself from the scandal. The company claims that its Management and Supervisory Board was not involved in the disputed contracts.

INA’s Actions:

  • Initiated termination proceedings against Škugor
  • Plans to revise existing contracts
  • Will launch legal actions
  • Introduce stricter internal controls

INA’s swift response comes as a welcome move in the face of this major financial scandal.