57 victims in major insolvency fraud case as Latvian police seek prosecution of three suspects
Latvian State Police have completed an investigation into large-scale fraud involving insolvency process services, identifying 57 victims with total damages exceeding €81,000. The case has been sent to prosecutors with a request to charge three people.
The State Police of the Riga region have concluded a lengthy pre-trial investigation into suspected organized fraud committed through companies offering services related to personal insolvency proceedings. Investigators identified 57 victims who suffered combined financial damage of at least €81,303.
How the scheme worked
According to the investigation, people facing financial difficulties turned to a network of interconnected companies that presented themselves as experienced, professional specialists in insolvency matters. Clients signed contracts for document preparation, agreeing to pay regular fees over several months. However, investigators found that clients' financial situations and submitted documents were not always properly assessed to identify obstacles that could prevent a successful insolvency process. As a result, several clients had their insolvency proceedings terminated without debt relief, leaving their financial situation unimproved — and in some cases significantly worse.
Three roles in the criminal group
Investigators determined the crimes were carried out by a group of three people with distinct roles. One person managed company operations, finances, advertising and hiring, and occasionally advised clients. A second person mainly communicated with clients, gathered information about their financial situation, and monitored their payments. A third person, a certified insolvency administrator, was involved in client communication and preparing insolvency documents. The alleged criminal activity took place between 2018 and 2024.
Money laundering and seized assets
A financial investigation uncovered evidence of money laundering involving at least €89,649, part of which was allegedly directed toward acquiring real estate. Other financial transactions were also examined as possibly intended to disguise the illegal origin of the funds. To secure potential asset confiscation and compensation for victims, movable and immovable property as well as funds have been seized.
What happens next
The case has been classified under the Criminal Law provision on fraud committed by an organized group, with one suspect additionally facing a charge of large-scale money laundering. On August 17, police forwarded the case to the prosecutor's office, requesting criminal prosecution of three Latvian citizens born in 1966, 1990 and 1995, none of whom had previous police records. They have been placed under restrictions not involving detention. Police stressed that no one is considered guilty until proven so in court.
