Romanian top millionaire Ilie Carabulea on remand

One of the Romanian top millionaires, businessman Ilie Carabulea and his son, along with other five people were detained by the organized crime prosecutors on Wednesday evening.

They are investigated for setting up an organized crime group, for abuse of office, tax evasion and money laundering in the Carpatica Insurances file. Ten people are eyed in this case, while other charges also point to forgery, embezzlement and information forgery.

The prejudice mounts to RON 70 M.

Prosecutors claim that at the end of 2014, early 2015 Carabulea together with other 4 people set up a criminal group to protect the interests of Carpatica insurance company and to hide it faced serious financial problems. They mainly wanted to avoid its operating permit on the local insurance market being suspended.

Organized crime prosecutors conducted 13 searches in Sibiu, Ilfov and Bucharest at the private places of the suspects and the HQs of several insurance companies on Wednesday.

Carabulea is also eyed in another embezzlement and tax evasion file related to garbage collecting with a prejudice estimated to EUR 1 M. Bucharest Police are conducting 31 searches in this case on Thursday.

Banca Carpatica registered losses last year of RON 85.4 million, according to the bank’s statement sent to the stock exchange. The loss includes provisions amounting to RON 32.6 million recorded in connection with the non-performing loans portfolio and RON 35 million representing adjustments for depreciation and losses resulting from the revaluation of repossessed assets.

Therefore, at the end of January, businessman Ilie Carabulea and four other shareholders of Banca Comerciala Carpatica (BCC), will sell to Nextebank 20% of the BCC shares, consequently Nextebank will become majority shareholder following a subscription of new shares.

Ilie Carabulea has an estimated wealth of EUR 90 M.