After finding out about possible violations during the liquidation of Trasta Komercbanka, the State Police's Economic Crime Department in January 2017 opened a criminal process on extortion and large-scale money laundering by an organized group.
The police investigation established that, in 2016, two insolvency administrators, born in 1980 and 1971, used the Trasta Komercbanka liquidation process for personal gain and joined up with four men, born in 1969, 1977, 1970 and 1953, to run an extortion scheme. The group is also suspected of large-scale money laundering.
In June 2017, the State Police carried out sixteen searches, seizing a number of important documents and arresting several properties, luxury automobiles, and hundreds of thousands of euros in cash.
Six persons were detained in the case, of which one, Spruds, is still in custody.
As reported previously, Latvia's finance watchdog, the Financial and Capital Markets Commission, pulled the license from Trasta Komercbanka back in 2016 for money laundering violations.