Court sentences fraudster in 88,375-euro scam to three years

Kaunas District Court sentenced a man identified as M. Š. to three years in prison for defrauding more than 250 individuals and legal entities of 88,375 euros, LRT reported, citing the court. The sentence has been suspended for two years.

The court found M. Š. guilty of fraud and unlawful activity involving a legal entity. He had established a company that conducted no actual economic activity and used it to conceal illegal operations.

The company was presented as a legitimate trader offering used cars and new mobile phones through an online store. Advertisements offered cars including BMW 328 Xi, Audi A6 and Audi Q3. Buyers paid deposits into the company’s bank account for the cars to be sold and delivered, but the vehicles were never provided.

Phones were offered through the online store www.telemaxi.lt at prices below market rates. Customers paid for their orders into the company’s accounts but did not receive the goods.

The court said the fraud was continuous and well organised, affected many individuals and legal entities, and had caused damage that remained largely uncompensated.

It also found that M. Š. was not the organiser of the criminal scheme and had acted under the direction of others. He had withdrawn less than half of the total amount obtained through the fraud, and the case contained no reliable evidence that he had received all of the payment promised to him.

The court treated his admission of the essential circumstances, sincere remorse and recognition of the victims’ financial claims as mitigating factors. His participation in a group of accomplices was considered an aggravating circumstance.

In imposing the sentence, the court noted that M. Š. was 19 when the offences were committed. Nearly eight years had passed since then, and he had committed no further offences, was employed, had not evaded the court and had not delayed the proceedings.

During the suspension period, M. Š. must continue working or studying, remain at his home from 11 p.m. to 6 a.m. unless away for work or studies, and may not leave his city or district of residence without permission from the institution supervising his sentence. Within nine months of the judgment becoming final, he must also take part in a behaviour correction programme.

The court additionally barred him for two years from establishing or managing legal entities and organising e-commerce activities. It fully upheld the civil claims filed by the victims and civil plaintiffs.

The judgment may be appealed to the Kaunas Regional Court within 20 days of its announcement.