Group of companies causes damage of over €15m to financial-banking system

Five companies in Moldova caused damage of over €15 million to the financial-banking system by taking out loans through offshore companies, which the banks could not recover because the security was overestimated, Info-Prim Neo reports. In a news conference on December 11, the head of the Ministry of the Interior’s Frauds Division Vitalie Briceag said that the five companies are authorized to assess realty. They overestimated the prices of buildings secured for loans. The money obtained from banks was transferred abroad based on contracts for the purchase of building materials for the repair of the secured buildings. The money transferred to offshore companies in Cyprus, Virgin Islands or Panama hasn’t been paid back. The police suspect a number of employees of the banks of collusion. Searches were performed at the place of the suspects and the head offices of the firms involved in this fraudulent scheme. The suspects face 8 to 15 years over swindle. A criminal case was opened against bank employees for getting loans by swindle and for violating the lending rules. They are liable to a fine of up to 60,000 lei or up to six years’ imprisonment and will be banned from carrying out a certain activity.