Prosecutors provide new details in the “Bank Fraud” case: seizures of about 26 million lei imposed on Vladimir Andronachi

In connection with the official charges brought against former Democratic MP Vladimir Andronachi, who is also included in the “Bank Fraud” case, the Anti-Corruption Prosecutor’s Office (PA) announces that it has identified and applied, with the support of the ARBI of the National Anti-Corruption Centre (CNA), seizures totalling approximately 26 million lei, including real estate, shares in the share capital of some companies, and money.

This is equivalent to the damage caused by the actions incriminated to the accused and other persons in the episode investigated in the criminal case “Bank Fraud”, the Prosecutor’s Office representatives said. According to the AP, Vladimir Andronachi has pleaded not guilty and, at the moment, making use of his procedural right, refuses to give statements. He was remanded in custody for 30 days.

At this stage, in the criminal case “Bank Fraud”, the PA, including with the support of ARBI, announces that it has applied seizures on assets worth about 6.4 billion lei, including outside Moldova, for “recovery of the damage caused as a result of the fraud”.

“On 2 November 2022, prosecutors from the Anti-Corruption Prosecutor’s Office notified Mr Vladimir Andronachi of the indictment order. The incriminated acts constitute activities carried out by a group of persons in the autumn of 2014. Using fictitious documents 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 MDL 32 million 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 MDL 6 million was returned to the Savings Bank SA in the process of liquidation in 2015, resulting in a total damage of about MDL 26 million. For the most part, 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 NAC’s ARBI, identified and applied seizures totalling approximately MDL 26 million, including real estate, shares in the share capital of companies, and money. 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 statement said.

According to the AP, part of the money obtained through the same scheme was used for the purchase of a plane by former PDM leader Vladimir Plahotniuc.

“With reference to this episode concerning Vladimir Plahotniuc, the Anti-Corruption Prosecutor’s Office recalls that it has completed investigations and sent to the investigating judge a request to send the criminal case to court in the absence of the defendant in August 2022. A decision in this regard has not yet been rendered, with the next court hearing scheduled for today, 3 November 2022. Previously, in March 2022, three other persons were sent to court for the same facts, with the case at the judicial inquiry stage and the court hearings being held in public. Three other persons are charged with participation in fraud and money laundering. One of them has been the subject of a search investigation and an arrest warrant issued in absentia. At the same time, the Anti-Corruption Prosecutor’s Office has sent all the necessary documents for his international search, and will ensure the completion of the prosecution in the near future,” the AP said.

According to the AP, so far in the criminal case “Bank Fraud”, “the Anticorruption Prosecutor’s Office, including with the support of the ARBI, has applied seizures on assets worth about 6.4 billion lei, including outside Moldova, for the recovery of the damage caused as a result of the Fraud”.

In the period 2020-2022, prosecutors completed criminal prosecution in 9 criminal cases, and 8 of them were sent to court, with 15 persons having the status of defendants (a deputy, a former governor, a former deputy governor, and a head of department of the National Bank of Moldova, the former acting president of the Savings Bank, the former acting president of BC “Social Bank”, the former president of BC “Unibank” SA, two accountants, and other persons).