Every year, numerous financial crimes occur worldwide, with some individuals using other people’s funds for personal gain. In some cases, these crimes are driven by gambling addictions. A former BaltCap investment fund manager is suspected of embezzling between €16 million and €30 million, allegedly to fund online gambling.
The shocking story first emerged in January, and more details have recently been uncovered by the Lithuanian national broadcaster’s website, LRT.lt. According to reports, BaltCap fired the investment fund manager, identified as S.S., in November due to financial mismanagement and alleged forging of documents and signatures. This allowed the individual access to millions of euros.
BaltCap’s managing partner, Simonas Gustainis, revealed that the estimated losses may be as high as €30 million, prompting an international search for the former employee. The allegedly embezzled funds were reportedly spent through the Olympic Casino Group Baltija, with the casino’s CEO confirming that the source of the funds was verified. The money was transferred to the gambling account from accounts in financial institutions operating in Lithuania.
Gustainis expressed surprise at the lack of suspicion or notice of infractions by the former employee and questioned the absence of internal safeguard mechanisms and external oversight by gambling regulators or financial monitoring agencies.
The investigation into the case is ongoing as authorities endeavor to ascertain the full extent of the alleged embezzlement and its impact on the Estonia-based investment fund. It remains to be seen how the situation will unfold and what consequences the former employee may face if found guilty of the suspected crimes.