Police propose prosecution of three over alleged fraud of 57 clients
Thursday 3rd September 2026 on 10:01 in
Latvia
Latvia’s State Police has completed a pre-trial investigation into alleged fraud involving insolvency services, identifying 57 victims and estimated damage of at least 81,304 euros, LSM reported. Police have proposed criminal prosecution for three people.
The investigation found that people in difficult financial circumstances contacted several interconnected companies offering services related to personal insolvency proceedings. The companies created the impression that their services were provided by experienced, professional and competent specialists.
Clients signed agreements for the preparation of documents needed to start insolvency proceedings and agreed to pay regular fees over several months. However, investigators said the clients’ financial situations and submitted documents were not always properly assessed to identify circumstances that could prevent the successful completion of the proceedings and the discharge of their debts.
For several clients, the insolvency proceedings were later terminated without their debts being discharged. Instead of improving, their financial situation remained unchanged or, in some cases, deteriorated significantly.
Evidence gathered during the investigation indicates that the alleged offence was carried out by a group of three people, each with a specific role.
One person organised the companies’ operations, managed financial matters, arranged advertising, hired employees and, in some cases, advised clients. Another mainly communicated with clients, gathered information about their financial situations, gave instructions on further action and monitored payments to the companies.
The third person, a certified insolvency administrator, was involved in communicating with clients and preparing insolvency-related documents. Investigators said the alleged criminal activity took place between 2018 and 2024.
A significant part of the investigation involved analysing financial flows. Evidence indicates possible money laundering involving at least 89,649.47 euros.