Poland Rocked by Banking Sector Fraud: 152 Investors Harmed to Tune of PLN 16 Million
Major Fraud Operation Busted in Poland
A joint investigation between the Central Bank of Poland (CBA) and the District Prosecutor’s Office in Warsaw has led to the busting of a major fraud operation, involving four individuals from the Great Private Equity group. The suspects have been detained for their alleged involvement in irregularities in financial advisory services.
Fraudulent Bond Sales and Investments
The accused are believed to have defrauded at least 152 investors out of PLN 16 million (approximately EUR 4 million) through fraudulent bond sales and investments on the FOREX market. The victims were promised returns of up to 10% on their investments, but instead, they lost their savings after being offered reinvestments with guaranteed profits.
Extensive Fraud Evidence Uncovered
The CBA Regional Office in Warsaw uncovered extensive fraud evidence, including:
- Documentation
- Electronic data
- Witness testimonies
Investigations revealed that the company’s clients invested in bonds and real estate located in Poland, Nigeria, Ghana, and even film production ventures. The fraud scheme worked by initially repaying investors’ initial investments, only to later avoid contact with them, leaving them with significant losses ranging from PLN 1,000 to over PLN 3.5 million.
Charges Pressed and Investigation Ongoing
Prosecutors have pressed charges of fraud against the suspects, who are accused of trading in financial instruments without proper permission from the Polish Financial Supervision Authority (KNF). The investigation is ongoing, and additional charges may be filed as more evidence comes to light.
Appeal for Investors and Public Awareness
The CBA has launched an appeal for all investors who entrusted their money to companies affiliated with Great Private Equity group to contact them. The agency also reminded the public that they can verify whether an institution is on the KNF warning list by visiting the authority’s website.
Suspects Held in Custody or Under Preventive Measures
The detained suspects are being held in custody, while two others have been placed under non-custodial preventive measures, including police supervision and a ban on leaving the country.