Bank fraud case: the PA announces that it has completed the prosecution of former Democratic MP Vladimir Andronachi and an accomplice

The Anti-Corruption Prosecutor’s Office (PA) announces that on 25 January 2023 it concluded the criminal prosecution against Vladimir Andronachi and an accomplice in the criminal case separated from the case generically called ,,Bank Fraud” .

“As a result of the alleged offences, the State of Moldova has been damaged by more than 26 million lei, the amount being covered by the seizures applied”, the PA states.

According to the PA, the defence is to be provided with the materials of the criminal case “in 76 volumes as well as electronic information”.

“The incriminated facts constitute activities carried out by a group of persons in the autumn of 2014. Using fictitious acts and false information, the persons caused the conclusion with Banca de Economii SA of an investment contract under the false motive of reconstruction and repair of a new headquarters for the bank. On the basis of this contract, the bank transferred about 32 million lei to a company effectively controlled by Vladimir Andronachi, which the latter converted, placed and stratified through several non-resident companies with accounts opened in two banks in Latvia. About 6 million lei were returned to the Savings Bank SA in the process of liquidation in 2015, resulting in a total damage of about 26 million lei. Most of the money embezzled through fraud and money laundering was used for personal expenses, purchase of real estate and cars, and investment in other businesses.

In connection with the formal charges against Vladimir Andronachi, the Anti-Corruption Prosecutor’s Office, with the support of the CNA’s ARBI (CNA – the National Anti-Corruption Centre; ARBI – The Agency for the Recovery of Criminal Assets), identified and applied seizures totalling approximately 26 million lei, including real estate, shares in the share capital of companies, and cash. This constitutes the equivalent of the damage caused by the incriminated actions to the accused and other persons in the episode investigated in the criminal case of Bank Fraud”, the PA previously pointed out.

Vladimir Andronachi has pleaded not guilty.

Former Democratic MP Vladimir Andronachi, considered a close associate of former PDM leader Vladimir Plahotniuc, is in pre-trial detention. Judges of the Chisinau Court of Appeal rejected on Tuesday, 10 January, the appeal of his lawyers for his release.

Vladimir Andronachi was placed on November 2, 2022, in isolation at the National Anti-Corruption Center.

Vladimir Andronachi, who was expelled in November 2022 by the Ukrainian authorities, is listed in the criminal cases “Bank Fraud” and “Metalferos”, which are under the management of the PA and the Prosecutor’s Office for Combating Organised Crime and Special Cases (PCCOCS).

According to anti-corruption prosecutor Octavian Iachimovschi, Andronachi is charged in the “bank fraud” case with “fraud in particularly large proportions for the benefit of a criminal organisation” and “money laundering in particularly large proportions for the benefit of a criminal organisation”.

In the “Metalferos” case, Andronachi is charged with “setting up and directing a criminal organisation”, fraud on a particularly large scale and money laundering.

On September 21, 2021, the PA obtained a 30-day arrest warrant for Andronachi issued by the Chisinau Court of Appeals, Ciocana Branch, in the “bank fraud” case, notes PA head Veronica Dragalin.

ZdG previously wrote that Vladimir Plahotniuc, the former chairman of the Democratic Party of Moldova, who is wanted by the Chisinau law enforcement authorities, had the right to sign or was a beneficiary of at least three companies that have benefited in recent years, directly or indirectly, tens of millions of dollars from contracts with “Metalferos”, a joint-stock company in which the state holds a majority stake. The name of Vladimir Andronachi, considered a close associate of the former PDM leader, also appears here.