Banks, Financial Services, Latvia, Legislation

artins Zalans and Ivars Prieditis.

Prieditis and Zalans' attorney Saulvedis Varpins told LETA that they had now also been charged pursuant to the Criminal Law's Sections 20 and 179.

The two Krajbanka board members were previously charged according to the Criminal Law's Section 196 Part 2 – use of and exceeding authority in bad faith for purposes of acquiring property.

In Varpins' opinion, the new charges were brought as the Criminal Law's Section 196 does not provide for confiscation of property, while Section 179 does.

Varpins suspects that the other Krajbanka board members who were released last week could also be charged with new crimes and ordered held in custody.

Varpins goes on to say that new charges can be brought against his clients in the case, because "that is the only opportunity for the state to cover the involved authorities' inaction and incompetence."

As reported, the Financial and Capital Market Commission halted Krajbanka’s operations after a deficiency of LVL 109 was established in the bank. Prieditis remains in custody, whereas the other three bank board members and Krajbanka co-owner Vladimir Antonov are suspects in the case.