Ex-BaltCap Manager Allegedly Embezzled Millions for Gambling Purposes
The Lithuanian Police, in collaboration with the European Public Prosecutor's Office, have launched an international search for a former BaltCap fund manager, who is alleged to have stolen between β¬16 million ($17.2 million) and β¬30 million ($32.3 million). The shocking story, which first emerged in January, has been making headlines ever since.
The saga reportedly dates back to November, when BaltCap, a leading private equity firm in the Baltic region, fired one of its investment fund managers. The former employee, who has yet to be apprehended, was let go due to 'financial mismanagement.' However, further investigation has revealed that the losses may have been far greater than initially suspected.
Simonas Gustainis, BaltCap's managing partner, initially estimated the losses to be β¬16.5 million ($17.8 million), but further investigation has estimated the losses may be as much as β¬30 million ($32.3 million). The allegedly stolen funds impacted an Estonia-based investment fund and were gambled via Olympic Casino Group Baltija, a prominent gambling operator in the region.
It is strange that the former employee was able to operate for so long without anyone suspecting or noticing any infractions. Even more peculiar is that internal safeguard mechanisms did not trigger during the former employee's actions. External safeguards by gambling regulators or financial monitoring agencies also failed to notice the multi-million-euro transactions.
The gambling activities of the former fund manager were conducted in non-cash money over the internet, over a relatively long period of time. The money was transferred to the gambling account from accounts in financial institutions operating in Lithuania, and the origin of the money was substantiated.
Investigations have also uncovered that documents that may have been forged by the former fund manager may have been supplied to the unsuspecting online gambling operator. Tomas PalevicΜius, the CEO of Olympic Casino Group Baltija, confirmed that the source of funds of BaltCap's former manager was checked.
An investigation into the former employee's activities alleged that he engaged in forging documents and signatures. The Lithuanian Police, in collaboration with the European Public Prosecutor's Office, are currently conducting an ongoing investigation into the case.
Earlier this week, LRT.lt, a website belonging to LRT, the Lithuanian national broadcaster, uncovered more details regarding the alleged multi-million-euro theft and abuse. The public is urged to remain vigilant and report any suspicious activities to the authorities.
