The alleged theft of millions of euros from BaltCap, an Estonia-based investment fund, has shocked the financial world. It is believed that a former investment fund manager, identified only by the initials S.S., abused his position to steal between €16 million and €30 million. The stolen funds are suspected to have been used for online gambling.
The saga began in November when BaltCap fired the employee due to “financial mismanagement.” Further investigation revealed that the former employee had engaged in forging documents and signatures to gain access to the millions of euros. Simonas Gustainis, BaltCap’s managing partner, initially suspected the theft to be around €16.5 million but later estimated the losses to be as much as €30 million.
An international search has been announced by the European Public Prosecutor’s Office for the whereabouts of the former employee. Allegations claim that the embezzled money was gambled via the Olympic Casino Group Baltija. CEO Tomas Palevičius confirmed that the source of funds of the former manager was checked and that the gambling was conducted over a relatively long period of time through non-cash transfers.
Gustainis expressed suspicion that the former colleague may have forged documents supplied to the online gambling operator. He was perplexed as to how the former fund manager was able to operate without triggering any internal safeguard mechanisms or alerting gambling regulators and financial monitoring agencies.
The case is currently under investigation, with ongoing efforts to uncover the full extent of the alleged theft and misuse of funds. It is a reminder of the potential risks and challenges in the financial industry, as well as the importance of robust oversight and regulation to prevent such incidents in the future.