Charges Brought Against Nine People in Heves County for Budget Fraud of Hundreds of Millions

Police

The Heves County Prosecutor General’s Office brought charges against nine people for the crime of budget fraud, which caused a particularly large financial disadvantage, committed in a criminal association and as a business, as well as other crimes.

Ádám Miklós Gubala, the deputy press spokesman of the Attorney General’s Office, told MTI on Thursday that the man accused of committing a series of economic crimes and his companions illegally obtained nearly HUF 355 million according to the indictment. In 2014, the first-rate defendant convinced a man who worked for him to found two companies and to buy the business shares of a company with the promise of money, despite the fact that the employee did not want and was not able to conduct economic activities with them. After that, the leader of the criminal organization persuaded the man to open a bank account and a customer portal for the companies, and then gave him the codes necessary to manage the companies. The man founded and registered the business companies in the name of his agent so that through them he could give false invoices to other company managers who wanted to reduce the VAT liability of their companies without authorization.

In 2015, the first-rate defendant introduced two executives in order to use one of them to obtain false invoices for the company managed by the other. Thus, the defendants issued and received invoices for fictitious advertising and promotional activities. The first-rate defendant later loaned more than HUF 340 million to his acquaintance, as well as withdrawing from the bank account of his fraudulent companies the amount transferred by one of the two companies for the purpose of pretending to pay the false invoices.

In 2020, in order to thwart the expected confiscation of assets against him, the man persuaded several people to sign a false sales contract, according to which he bought, or in other cases sold, a property owned by himself and his relatives, on which he registered several usufructuary rights during the transactions. The Heves County Prosecutor’s Office has asked the court dealing with the case to impose a 6-year prison sentence and confiscation of assets equal to the damage caused by the fraud in the case of a confession to the head of the criminal organization – Miklós Ádám Gubala said. He said, in addition to the first one, the prosecutor’s office recommended imprisonment for two more defendants.

MTI
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