Romanian prosecutors of the Directorate for Investigating Organized Crime and Terrorism (DIICOT) are investigating 25 people for allegedly embezzling funds from two of the largest investment companies in Romania, SIF Muntenia and SIF Banat-Crisana, for capital market manipulation and money laundering.

The prosecutors have conducted 31 searches, on Monday, December 8, in Bucharest, Ilfov and Arad, at the suspects’ homes. The headquarters of the two investment funds have also been searched.

According to DIICOT, during the 2012-2014 period, the 25 suspects created an organised crime group which targeted the misappropriation of money from SIF Banat-Crisana and SIF Muntenia, two of the largest closed investment funds in Romania. They transferred the money via off-shore firms, which they controlled.

The damages in this case amount to more than EUR 16 million, according to local media.

SIF Banat-Crisana had net assets of EUR 358 million, at the end of October 2014, while SIF Muntenia had almost EUR 230 million under management. SIF Banat-Crisana is controlled by a group of local and foreign investors whose main representative is Dragos Bilteanu, who is president of the company’s board. SIF Banat-Crisana also controls SIF Muntenia.

The two investment companies are listed on the Bucharest Stock Exchange (BVB).

editor@romania-insider.com