As reported by the Riga City Vidzeme Suburb Court, Ivars Priedītis, former governor of the AS Latvijas Krājbanka bank and Vladimir Antonovs, the bank’s co-owner were declared guilty in the criminal case regarding misappropriation.

The men were sentenced to prison (Mr Antonovs to six years while Mr Priedītis to five) and confiscation of property.

The court also ruled enforcement of compensation of EUR 27 mln – the amount of money they were accused of misappropriating, from both men in favour of the bank.

While both Mr Antonovs and Mr Priedītis were accused of abuse of power for personal gain, Mr Priedītis was also accused of forging and hiding statistical accounts of the Latvijas Krājbanka.

Due to a request of a representative of the victim bank to protect commercial secrets, the case was viewed in a closed trial.

It is expected for the full text of the ruling to be published in 14 days.

More than 30 witnesses gave their testimonies over the course of the trial procedure, which was commenced in 2011 and submitted to the court in 2014. Through this time, a total of 55 hearings were held to go through evidence presented both by the prosecution and defence.

The trial’s final stretch was also slowed by the COVID-19 pandemic that began in early 2020.

Once the full verdict has become available, the accused men have the right to appeal the ruling at Riga Regional Court.

Latvijas Krājbanka dates back to 1924. Its operations continued in various forms during the Soviet period, and following the regained Latvian independence, its privatisation process was initiated 1997 and concluded in 2003.

Pursuant to the decision of the Riga Regional Court, AS Latvijas Krājbanka was declared insolvent in 2011.