Insolvency fraud case under investigation in Latvia

The pre-trial investigation revealed that individuals in difficult financial situations turned to several interlinked companies offering services related to personal insolvency proceedings. Clients were led to believe that the services were provided by experienced specialists and that the companies were professional and competent in the field of insolvency. Contracts were signed with clients for the preparation of documents to initiate insolvency proceedings, providing for a regular service fee over a period of several months. For several clients, the insolvency proceedings were terminated without the discharge of debts, and instead of the intended financial resolution, their financial situation did not improve and, in some cases, deteriorated significantly. Evidence obtained during the investigation indicates that the offences were committed by a group of three individuals, each of whom played a specific role.