The Moldova Banking Scandal: Uncovering Ilan Shor’s Involvement

===========================================================

Background

In 2014, a massive theft occurred at three Moldovan banks: Banca de Economii (BEM), Banca Sociala (BS), and Unibank (UB). The investigation revealed that nearly $1 billion was stolen from these institutions.

Key Players Involved

• Ilan Shor, a businessman with connections to the government
• The Shor Group, a network of individuals associated with Shor

Shor’s Involvement in the Scandal

The Kroll investigation found that Shor and his associates played a central role in the scandal. They coordinated large-scale fraudulent activities, suggesting that Shor was one of the main beneficiaries of the theft.

Ilan Shor’s Role

• Gained control of the three banks through minority shareholders who owned more than 50% of the shares
• Utilized ABLV Bank in Latvia to obtain loans for purchasing bank shares

Loan Transactions and Beneficiaries

The Kroll investigation revealed a complex network of transactions involving the three banks, UK Limited Partnerships, and Latvian bank accounts. At least 77 companies within the Shor Group received approximately $2.9 billion in loans from the three banks between January 2012 and November 2014.

Key Findings

• The three banks coordinated their actions to maximize available liquidity and facilitate massive lending to Moldovan entities
• Loan proceeds were used to pay down existing loan exposure at one or more of the banks

Ongoing Investigation

The investigation into the bank theft is ongoing, and it remains unclear whether Shor was the sole beneficiary of the fraudulent schemes or if he acted in concert with other, as yet unknown, beneficiaries.