Case of company director accused of causing €350,000 in damages referred to court

The Šiauliai Regional Prosecutor’s Office has referred a criminal case to court involving the director of a Mažeikiai-based company accused of causing over €350,000 in financial damage, the General Prosecutor’s Office announced on Wednesday.

The director is charged with criminal bankruptcy, misappropriation of assets, fraudulent and negligent financial accounting, and document forgery or tampering. According to pretrial investigation data, the director allegedly mismanaged the company, transferring its operations to a newly established legal entity while intentionally avoiding bankruptcy proceedings. In doing so, he is accused of misappropriating entrusted company assets worth over €266,000 for personal use rather than for business-related payments.

To conceal the company’s true financial state and evade detection of his unlawful actions, the director allegedly hid financial documents and sold all company shares, leading to the company’s bankruptcy. The actions resulted in over €350,000 in damages to ten creditors.

Additionally, the director is accused of forging an insurance company’s cancellation document and a false insurance company stamp to avoid insurance premiums for the company’s benefit.

If convicted, the accused faces up to eight years in prison. Civil claims totalling over €190,000 have also been filed in the criminal case. The case has been referred to the Šiauliai Regional Court for examination.