Author Topic: Confirmed MASSIVE Bank Fraud, PrivatBank  (Read 196 times)

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Offline AkMike

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Confirmed MASSIVE Bank Fraud, PrivatBank
« on: 13:23 17-Jan-2018 »
Kroll confirms: before nationalisation PrivatBank was subjected to a large scale and coordinated fraud, which resulted in a loss of at least USD 5.5 billion




The results of an independent investigation by the company Kroll have been presented to the National Bank of Ukraine. The investigation has identified that PrivatBank was subjected to a large scale and coordinated fraud over at least a ten-year period ending December 2016, which resulted in the Bank suffering a loss of at least USD 5.5 billion.

 

Key findings of the investigation include:

 

1.   Extraction of funds. There are clear indications that loan proceeds were used to purchase assets and to finance business enterprises inside and outside of Ukraine for the benefit of former shareholders and their affiliates.

 

2.   Disguising the origins of funds. The mechanisms used to disguise the origin and destination of loan funds demonstrated the characteristics of a large-scale money-laundering scheme. The volume and timing of the transactions within minutes of each other and with no declared connection between the entity repaying the loan and the original borrower and the extensive use of Special Purpose Vehicle (SPV) companies based in off-shore jurisdictions, demonstrated indications of a concerted attempt to disguise the true nature of the economic purpose from regulatory and other stakeholders for the benefit of the former shareholders and their affiliates.

 

3.   Bank within the bank. Central to the coordinated manipulation of the loan book, and extraction of benefit was a shadow banking structure within PrivatBank. The secretive structure processed and facilitated the movement of the proceeds of hundreds of loans worth billions of USD to parties related to the former shareholders and their affiliates. This shadow banking structure used hundreds of employees embedded within the bank.

 

4.   Structure and administration of the loans. The shadow bank administered the related party corporate loan portfolio. It issued new loans, typically used to repay principal and interest on existing related party loans (Recycling Scheme), and was the architect of fund flow mechanisms to disguise the origin and destination of the loan funds, presenting a fa?ade of an ordinary client-focused bank. The Bank attracted funds from private and commercial depositors from Ukraine and other countries, which facilitated the Loan Recycling Scheme.

This long term hiding of such a large exposure to related parties required PrivatBank to make repeated false representations of its financial position. This misrepresentation could only have been achieved through multiple instances of banking fraud and false accounting by the former management of the bank.

 

5.   Balance sheet. Prior to nationalisation in December 2016, more than 95 percent of corporate lending was to parties related to former shareholders and their affiliates. Towards the end of 2016, 75% of the loan book was consolidated into loans to 36 borrowers related to the former shareholders and their affiliates. The majority of these loans remain overdue and unpaid, resulting in a loss to the Bank of at least USD 5.5 billion.

 

The results of the Kroll investigation confirm previous conclusions of the National Bank.

 

The National Bank confirms its readiness to share the results of investigations with law enforcement authorities.

 


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Online Reggie

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Re: Confirmed MASSIVE Bank Fraud, PrivatBank
« Reply #1 on: 14:47 17-Jan-2018 »

Not surprised in the least about the bank. 

Will not surprise me if the theft continues.

Presently, I also suspect my local gas company of funny billing; I get the sense each month that they pull a number out of a hat to see if I will pay it or notice.   People should also look at their gas bills carefully. 
Life would be tragic if it weren't funny.

Offline AkMike

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Re: Confirmed MASSIVE Bank Fraud, PrivatBank
« Reply #2 on: 15:07 17-Jan-2018 »
You don't look at the meter readings?  ???  We note the gas and electricity. So far no problems that we've noticed.
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Re: Confirmed MASSIVE Bank Fraud, PrivatBank
« Reply #3 on: 17:56 17-Jan-2018 »
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Not surprised in the least about the bank. 

Will not surprise me if the theft continues.

Presently, I also suspect my local gas company of funny billing; I get the sense each month that they pull a number out of a hat to see if I will pay it or notice.   People should also look at their gas bills carefully.

The gas company tries to bill ahead, by anticipating how much money some of us will own by the following month. It is an attempt to get cas into their system faster by having you sorta pay ahead. We go down every month with the correct numbers and amount and tell they to fu ck off that we are not paying for what we have not yet received. Many older people freak out and pay and wonder why they are broke in a few days.   
Peace is the failure of the military to convince the government that it can and should kick its enemies ass.

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Re: Confirmed MASSIVE Bank Fraud, PrivatBank
« Reply #4 on: 20:31 17-Jan-2018 »
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You don't look at the meter readings?  ???  We note the gas and electricity. So far no problems that we've noticed.

Today is Wednesday.   

Monday (2 days ago, I paid 1700 uah?); then Tuesday they asked for 3000 uah. 

Meter or no meter, there's some weird stuff happening.    Forgot to say, they bill me through PrivatBank; have never seen a paper bill from them.
Life would be tragic if it weren't funny.

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Re: Confirmed MASSIVE Bank Fraud, PrivatBank
« Reply #5 on: 23:13 17-Jan-2018 »
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You don't look at the meter readings?  ???  We note the gas and electricity. So far no problems that we've noticed.

Today is Wednesday.   

Monday (2 days ago, I paid 1700 uah?); then Tuesday they asked for 3000 uah. 

Meter or no meter, there's some weird stuff happening.    Forgot to say, they bill me through PrivatBank; have never seen a paper bill from them.


The Gas Lady came today to read the meter, I made sure she wrote down the proper number and I signed it. When the bill comes if the numbers do not match then it is back down to the gas company to tell them to fuc k off again. I like to tell old Soviets to fu ck off, it makes me fell like...like...an American damnit!

Seriously. It does.

No, really.

Yeah.
Peace is the failure of the military to convince the government that it can and should kick its enemies ass.

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Re: Confirmed MASSIVE Bank Fraud, PrivatBank
« Reply #6 on: 23:41 17-Jan-2018 »

I spent 2-3 weeks going back and forth to the gas company last year this same time; it was a miserable experience.   I don't want to repeat that.  Thank God the lady that ran things was a decent and civilized person; but the red tape and BS was almost unbearable.  Very fine lady though: one candle in a canyon of pitch black laziness. 
Life would be tragic if it weren't funny.

Online frank1010

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Re: Confirmed MASSIVE Bank Fraud, PrivatBank
« Reply #7 on: 16:55 18-Jan-2018 »
I don't even get a gas bill (only end of the year). Meanwhile the gas company expects me to read the meter every month, multiply the reading by 6.9 (hrywna per cbm) and pay....

But its got nothing to do with the OP about privat Bank snd the robbery by Kolomoisky and his cronies. Will the ukrainian people ever see a prosecution?

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Re: Confirmed MASSIVE Bank Fraud, PrivatBank
« Reply #8 on: 19:00 18-Jan-2018 »


My point kind of got lost.   I get a lot of my bills through PrivatBank.  And I've seen some funny bills; not sure if it's Privat, or the Gas company, or both.
Life would be tragic if it weren't funny.

Online Darren Jones

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Re: Confirmed MASSIVE Bank Fraud, PrivatBank
« Reply #9 on: 04:08 19-Jan-2018 »
We write our readings on the gate with chalk, not failed us yet