Financial Services, Legislation, Lithuania, Shadow economy

"All defendants were justly sentenced for fraudulent bookkeeping. The bookkeeping was really fraudulent as large amounts of money were included into unofficial books," the judge said during the Monday hearing.

According to Razinskaite, one of the defendants in the case, Vytautas Gapsys, had the authority to order the unofficial accountant, Nijole Steponaviciute, to cover certain expenses.

Earlier in the day, Lithuania's Court of Appeal acquitted former leader of the country's Labor Party, MEP Viktor Uspaskich of large-scale tax avoidance. And he was given a fine of EUR 6,800 for fraudulent bookkeeping.

Other defendants in the case were also acquitted of fraud and received fines for fraudulent bookkeeping.

On July 12, 2013, Vilnius Regional Court found Uspaskich guilty of fraud and fraudulent bookkeeping and sentenced him to four years in prison.

Prosecutor Saulius Verseckas of the Prosecutor General's Office had asked the court to sentence Uspaskich to six years in prison.

The verdicts were also changed for other defendants. Labor Party member Vytautas Gapsys received a fine of EUR 3,600 and the party's former accountant will have to pay EUR 5,700.

The defendants had asked the court for complete acquittal, stating that it’s a political case.

The Labor Party is charged with failing to include nearly EUR 7 million in income and EUR 6.6 million in spending in its books in the 2004-2006 period.