A solicitor from Sandness has been charged with running a private and fictitious loan business through a company he was a partner in. At least NOK 500 million is missing.
Short version
- A solicitor who died in Sandness was accused of engaging in fictitious loan transactions.
- At least NOK 500 million is gone.
- 60 companies and individuals claim to have given loans.
- The case is referred to as the biggest prosecutorial scandal in Norwegian history.
Reports suggest that around 60 companies and private individuals from Rogaland have loaned the lawyer a total of NOK 500 million. Stavanger Aftenblad.
The body of the person was recovered on Monday last week. Fleming Carlson, the estate's trustee, tells the newspaper they don't have an outlook yet and expects the case to escalate. This case was discussed first Sandnesposten.
The lawyer, who brokered gray market loans from local lenders to unknown recipients, was employed by law firm Bull Orstad until earlier this year.
The trustee says the explanation for this, which has been going on for more than 15 years, is that the lenders were paid interest along the way. In order to pay interest to the lenders, the deceased lawyer must arrange new loans.
Corruption
The debtors' lawyer, Bård Koppang, calls the case the biggest prosecutorial scandal in Norwegian history and sees similarities to so-called Ponzi schemes.
– This appears to be the biggest prosecutorial scandal in Norwegian history, both in terms of amount, scope and actions, says Koppang at the Selmar law firm.
– In the loans we reviewed, we did not find genuine borrowers, he says.
to do Dagens Naringsliv says the case is a huge burden to their customers.
– They take it hard. They feel cheated. For some, it means a lot. Koppang tells DN that it could be their saved funds.
Bull Orstad's general manager, Lars Kore Pedersen, tells Stavanger Aftenblad that the entire staff is shocked and in shock after uncovering the alleged fraud by their colleague.
reported
– We reported the fraud on May 31, says Pedersen.
The case was dropped because the man died, according to police prosecutor Rune Gertsen Stavanger Aftenblad.
Finanstilsynet has recently received a briefing on the case from lawyer Copbank. They report to Sandnesposten. The Commission was not aware of this case before this.
– There is a requirement to be registered with the Norwegian Financial Supervisory Authority to engage in credit intermediation activities, and a permit from the Norwegian Financial Supervisory Authority is required to engage in lending activities. The deceased was not authorized or registered, says Jo Singstad, supervisory adviser at the Norwegian Financial Supervisory Authority.
Until it came to light, the TA-Invest case was considered the biggest fraud case of its kind in Norway in recent times. The duo behind DA-Invest stayed Two and a half years imprisonment For motivating 211 people to invest a total of NOK 272 million.
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