Liviu Luca, the former leader of the OMV Petrom employees’ union, is currently investigated for embezzlement and money laundering as well as for setting up an organized crime group. The Directorate for Investigation of Organized Crime and Terrorism (DIICOT) Ploiesti held Luca on Monday, but the Prahova Court decided that he should be placed under judicial control and not arrested, according to Mediafax.

The former union leader and several other people have been accused of embezzling over RON 15.5 million (EUR 3.5 million) from the oil service company PSV Company, the former Petromservice. Liviu Luca allegedly used the company’s money and human resources to build a residential compound in a village near Ploiesti for his own use, according to the DIICOT prosecutors.

Liviu Luca used to be one of the most powerful union leaders in Romania, as he led the employees’ union of the oil & gas group OMV Petrom, a company that had more than 50,000 employees in 2004 when it was privatized.

The union controlled 50% of the oil services company Petromservice, which did various services for Petrom and Liviu Luca ran the company. In 2006, Luca decided a capital increase at Petromservice but waived the union’s right to participate in this operation, thus allowing an offshore firm registered in Cyprus (Elbahold Industries) to take control of almost half of the company’s shares. The offshore firm was controlled by controversial businessman Sorin Ovidiu Vantu.

In 2007, OMV Petrom decided to buy out Petromservice’s activity for EUR 328.5 million. The company changed its name to PSV Company. In April 2009, it went into insolvency.

In July 2014, Liviu Luca and Sorin Ovidiu Vantu were sentenced to 6 years in prison each for embezzling over EUR 83.5 million from Petromservice. The court also ruled that Luca should pay EUR 38 million. The decision was not final and the appeal hasn’t been tried yet.

Another court sentenced Liviu Luca to 3 years in prison in another case related to his activity as a vice president of the CNSLR Fratia union confederation. The decision, which was announced in November 2015, is also not final.

Romanian investor Vantu and union leader Luca arrested on money laundry accusations

editor@romania-insider.com