Businessman accused of embezzling company funds for personal travel and loans

A Lithuanian businessman has been formally charged with systematically misappropriating and squandering hundreds of thousands of euros from a company registered in Pakruojis district, prosecutors announced on Tuesday.

The General Prosecutor’s Office has transferred the criminal case to Šiauliai Regional Court’s Radviliškis division, alleging the defendant—previously convicted for financial crimes—used his control over the company to conceal its true financial state while diverting funds for personal gain, LRT reports.

According to investigative findings, between June 2020 and September 2022, the businessman effectively managed the company despite not holding a formal leadership position. He allegedly failed to maintain proper accounting: no designated accountant was appointed, cash transactions went undocumented, and portions of income, expenses, and economic operations were left unrecorded. These actions made it impossible to determine the company’s actual financial results, assets, or liabilities.

The scheme involved using company funds to repay other firms’ debts, cover personal obligations, finance travel, and purchase goods and services. Investigators estimate nearly €757,000 was embezzled or wasted in this manner.

Additionally, the Šiaulių County Police’s Economic Crimes Unit found that the defendant illegally redirected credit funds intended for company projects. Loans were instead used to settle unrelated corporate debts, transfer money to third parties, or withdraw cash for personal use. Two financial institutions suffered combined losses exceeding €127,000 as a result.

Prosecutor Asta Mickevičiūtė stated that the fraudulent scheme operated over an extended period, with formally appointed managers unaware of the actual financial operations. The defendant now faces charges of falsifying financial records, embezzlement, misappropriation of assets, and misuse of credit funds.

A civil claim of €756,900 has been filed by the insolvency administrator of the now-bankrupt company to recover the alleged damages.