An investigation conducted by consultants AlixPartners Services UK LLP, hired by the Bulgarian Deposit Insurance Fund, examined the assets and finances of Corporate Commercial Bank (Corpbank), which collapsed around 2014. The resulting report, which was made public after a mandate from the Bulgarian Parliament, alleged significant misappropriation of funds from the institution. The findings detailed that companies directly or indirectly connected to Corpbank’s majority shareholder and chief executive, Tsvetan Vassilev, received an estimated BGN 2.5 billion, or approximately EUR 1.3 billion, in loans from the bank.
The report indicated that since 2009, Corpbank was involved in transactions detrimental to its own stability, with large sums allegedly siphoned off through various investment schemes. The investigation highlighted that loan facilities were widely utilized as a mechanism to finance funds that were improperly or illegally diverted from the bank, primarily benefiting the majority shareholder and his associates. Following the collapse, legal proceedings were initiated.
In July 2017, the Bulgarian prosecution service filed charges against Vassilev and seventeen other defendants, including former senior bank employees and auditors from KPMG Bulgaria. AlixPartners was engaged to trace and recover the failed bank’s assets. While the initial report suggested that 243 corporate clients held nearly 500 outstanding loans, the document detailed the scope of the alleged financial misconduct.
The publication of this comprehensive report provided critical documentation regarding the financial activities surrounding the former major lender, establishing a basis for subsequent legal action.
Topics: #alixpartners #report #corpbank
It’s interesting to see the full scope of the investigation now public.