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Former executives face prosecution for leading Latvian bank in bankruptcy

Xinhua, October 6, 2015 Adjust font size:

Latvian law enforcement authorities have launched a criminal prosecution against five individuals for leading Latvijas Krajbanka, or the Latvian Savings Bank, in bankruptcy.

Aiga Eiduka, a spokeswoman for the specialized public prosecutor's office for organised crime and other offences, declined to elaborate, saying the suspects had not yet been officially informed about the prosecution they are facing.

A separate probe against a sixth suspect in the case is still ongoing, the spokeswoman said.

Although the prosecutor's office did not disclose the names of the suspects, it has been reported that the Latvian State Police were seeking prosecution against the bank's former CEO Ivars Prieditis, former owner Vladimir Antonov, as well as former members of the bank's management board.

They are facing criminal prosecution for embezzling about 90 million euros worth of the bank's assets, abuse of office power, money laundering and accounting violations.

Antonov, a Russian businessman who used to sit on the Latvijas Krajbanka supervisory board, is thought to be the mastermind behind the financial scheme the collapse of which resulted in the bank's insolvency in November 2011.

Riga Regional Court declared Latvijas Krajbanka insolvent on Dec. 23, 2011 after it was discovered that a large amount of assets had vanished from the bank and the Latvian banking regulator ordered the bank to cease operations. The bank's bankruptcy procedure was started in May 2012. Enditem