Crime, Latvia, Legislation

In 2016, the police sent for criminal prosecution 16 criminal cases (altogether 34 counts) against 16 insolvency administrators accused of fraud, misappropriation and forgery of documents.

In 2017, the police sent for criminal prosecution 16 criminal cases (altogether 45 counts) against 27 insolvency administrators accused of various crimes such as misappropriation, abuse of official powers, extortion, money laundering and forgery of documents.

In the first five months of 2018 the State Police sent for criminal prosecution seven criminal cases (altogether 13 counts) against seven insolvency administrators. This year the State Police also started four criminal cases against insolvency administrators.

In 2016, the State Police received 377 of applications from legal entities and individuals about possible illegalities during the insolvency proceedings. The number of applications received in 2017 was 290, and about 100 applications were received in the first five months of this year.

Since 2015, the State Police has received 13 applications from the Insolvency Administration reporting on illegal actions by insolvency administrators.

The Latvian Corruption Prevention Bureau (KNAB) told LETA that from early 2016 till April 2018 it had received from the Insolvency Administration seven applications about possible crimes on part of insolvency administrators. At present the KNAB is investigating one criminal case in which an insolvency administrator is involved, and last year sent for criminal prosecution one criminal case against an insolvency administrator.

As reported, insolvency administrators Maris Spruds and Ilmars Krums were detained in June 2017 in a high-profile criminal case of extortion and money laundering. Altogether five people have been accused with conspiracy to extort about EUR 1 mln and to launder the money. Spruds was released from custody in February this year after his brother posted for him a EUR 0.5 mln bail which is the largest bail in the history of the Latvian judiciary.