Financial Crime World

Investigation Reveals Web of Deception: Individuals and Entities Uncovered in Global Banking Scheme

A recent investigation has uncovered a complex network of seemingly unrelated individuals and entities that were secretly working together to gain control of three major Moldovan banks. The scheme, which spanned several years, involved the use of loans from UK Limited Partnerships with Latvian bank accounts to buy shares in the banks.

Unwitting Shareholders

According to documents obtained by investigators, five Ukrainian citizens and two Russian citizens became unwitting owners of more than 50% of Banca Sociala shares in May 2013. Their identification documents were used fraudulently, and they were unaware that they had become shareholders of a Moldovan bank.

** Politicians and Businessmen Involved**

The investigation also revealed that Unibank’s shares were bought by several entities, including politicians and businessmen linked to Ilan Shor, the head of the administrative council of Banca de Economii (BEM). The former president of Moldova, Petru Lucinschi, was among those who purchased shares in Unibank after being approached by Shor.

Shor Group’s Control

The report suggests that Shor Group, a network of companies and individuals linked to Shor, gained control of the three banks through a complex web of transactions. The group used minority shareholders who collectively owned more than 50% of the shares in each bank to gain control.

Key Findings

  • The investigation identified at least 77 companies linked to the Shor Group as recipients of approximately $2.9 billion in loans from the three banks between January 2012 and November 2014.
  • The loan amounts were constantly increasing, allowing earlier loans to be paid off.
  • The report concluded that the majority of these loan funds were channeled through a coordinated money laundering mechanism in Latvia, before being either returned to Moldova or subjected to further money laundering mechanisms.

Consequences

The investigation has raised serious questions about the involvement of Shor and his associates in the scheme, as well as the extent of their connections to other entities and individuals involved. The report highlights the need for further investigation and accountability to prevent such schemes from occurring in the future.