Fake Steel Traders under Probe for Fraud against Czech Banks
Czech media reported that an international crime group, which defrauded two Czech banks and an insurance company out of USD 63 million in a
Czech media reported that an international crime group, which defrauded two Czech banks and an insurance company out of USD 63 million in a sophisticated fraud scheme involving fictitious steel trading is now facing charges. The individuals were allegedly in an operation to create a fictitious chain of customer-supplier relationships that copied the real business of foreign companies in the international steel trade. Four individuals, three Czech citizens and one foreigner, are facing insurance and credit fraud charges. They could face between 5 to 10 years in prison.
Police spokesman Mr Jaroslav Ibehej said "According to our conclusions, the accused persons had a very good knowledge of international transactions, bill of exchange transactions and knowledge of documents that are required for sea transport. Based on false documents provided by the accused, Czech banks provided funds for 21 fake deals.”
Czech authorities are collaborating with investigators from the United Kingdom, where the main perpetrators of the crime are being prosecuted.
According to the organized crime unit, the case has been investigated since 2013 and a criminal prosecution was launched in 2017.