Baltic States – CIS, Banks, Financial Services, Latvia, Legislation

The crime that the four committed is considered serious, as State Police Chief General Ints Kuzis told LETA.

Kuzis also confirmed that the police had confiscated the properties of the four accused. Prieditis' real estate, automobile, shares in a company and accounts in various banks have been arrested.

Also, Pelcbergs' automobile and real estate have been arrested as well as Zalans' properties, shares in a company and several automobiles.

The remaining board member, Svetlana Ovcinnikova is not a suspect in the case.

Saulvedis Varpins, attorney for Prieditis and Zalans, told LETA previously that they had now also been charged pursuant to the Criminal Law's Sections 20 and 179.

The two Krajbanka board members were previously charged according to the Criminal Law's Section 196 Part 2 – use of and exceeding authority in bad faith for purposes of acquiring property.

In Varpins' opinion, the new charges were brought as the Criminal Law's Section 196 does not provide for confiscation of property, while Section 179 does.

Varpins went on to say that new charges could be brought against his clients in the case, because "that is the only opportunity for the state to cover the involved authorities' inaction and incompetence."

As reported, the Financial and Capital Market Commission halted Krajbanka's operations after a deficiency of LVL 109 million was established in the bank. Prieditis remains in custody, whereas the other three bank board members and Krajbanka co-owner Vladimir Antonov are suspects in the case.