Former BaltCap Manager Suspected of Stealing Millions to Gamble

Every year, many financial crimes occur across the globe. While generally, people may abuse other individuals’ funds for their personal expenditures, some people are pushed into such crimes to fuel a gambling addiction. It is unclear if a former BaltCap investment fund manager had a gambling problem, yet he is suspected of abusing his power to steal between €16 million ($17.2 million) and €30 million ($32.3 million). The allegedly stolen funds are suspected to have been used for gambling online by the former executive.

Details regarding the shocking story emerged via different media outlets back in January. Earlier this week, LRT.lt, a website belonging to LRT, the Lithuanian national broadcaster, uncovered more details regarding the alleged multi-million-euro theft and abuse that impacted the Estonia-based investment fund.

The saga reportedly dates back to November when BaltCap confirmed it fired one of its investment fund managers. The person, identified with the initials S.S., was let go by the company last year due to “financial mismanagement.” A further investigation into the former employee’s activities alleged that the person engaged in forging documents and signatures, allowing him to gain access to millions of Euros.

The Stolen Funds Were Allegedly Spent for Online Gambling

Simonas Gustainis, BaltCap’s managing partner and colleague of the former employee, was quoted by LRT. He revealed that his former colleague was initially suspected of stealing some €16.5 million ($17.8 million). Yet, upon further investigation, Gustainis estimated the losses may be as much as €30 million ($32.3 million).

The current whereabouts of the suspected former BaltCap employee are unknown. According to the publication, an international search was announced recently by the European Public Prosecutor’s Office.

Allegations against the former investment fund manager claim he embezzled the money which was subsequently gambled via Olympic Casino Group Baltija. Tomas Palevičius, the casino’s CEO, confirmed that the source of funds of BaltCap’s former manager was checked. “His gambling was conducted in non-cash money over the internet, over a relatively long period of time, the money was transferred to the gambling account from accounts in financial institutions operating in Lithuania, and the origin of the money was substantiated,” explained Palevičius.

This position reaffirmed Gustainis’ suspicion that his former colleague may have forged different documents. Such documents may have been supplied to the unsuspected online gambling operator as well. Yet, Gustainis was baffled as to how the former fund manager was able to operate for so long without anyone suspecting or noticing any infractions.

Moreover, he wondered how the actions of the former employee did not trigger any internal safeguard mechanisms. For that matter, it is also strange that external safeguards by gambling regulators or financial monitoring agencies also did not notice the multi-million-euro transactions.

An investigation into the case is reportedly ongoing.