Romania: The Romcab case is being reviewed on several offenses charges

The DIICOT prosecutors have begun prosecution in rem of the actions, in the “Romcab” (MCAB) case, according to a response sent by the prosecutors to Valentin Stănescu, a shareholder in the company. Last summer, he brought a criminal complaint against the administrators of the company – Zoltan Prosszer, Sebastian Vlădescu and other directors, on charges of having committed several offenses, such as presenting inaccurate data about the situation of the company in the reports presented to the public, the presentation in bad faith of an inaccurate financial situation, in order to conceal the real situation of the company, manipulation of the stock market, fraud and the creation of an organized crime faction.

Cable maker Romcab (MCAB) filed for insolvency in the beginning of last year, amid a massive depreciation of its inventory, from 629.62 million lei, on September 30, 2016, to 498.9 million lei, on December 31st 2016 (according to the audited data).

On February 20 2017, the County Court of Mureş approved the cable maker’s request to enter insolvency, as it had reported a loss of 39 million Euros in 2016, even though it had posted a profit of 9 million Euros in the first nine months of 2016.

It is precisely these reports of the company to the BSE that have been the object of a complaint filed with the DIICOT by Valentin Stănescu, who claims he holds 1% in the company.

The DIICOT answered him, in January and told him that it had begun prosecution, and that investigations concerned the offense stipulated in the article of the stock market law concerning “the deliberate presentation by the administrator, director or executive of the company of inaccurate financial statements or false information about the company’s situation to shareholders”, which is punishable by 6 months to 5 years in jail and the restriction of certain rights.

Valentin Stănescu commented: “Romcab has sent to the Bucharest Stock Exchange false information and has misled investors. The criminal investigation bodies must act before it is too late. Because the company has entered insolvency, we, the shareholders can only hope to recoup our losses from those responsible.”

 

 

Read more about this case on Bursa.

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