Polish para-bank Nova New CEO charged with fraud worth PLN 560,000

The CEO of a Polish para-bank called Nova New has been charged with defrauding his clients to the tune of PLN 560,000, the local media reported, Dec. 13.

“The prosecutor’s office charged the CEO of Katowice-based company Nova New, Robert C., with carrying out banking activities without a licence and fraud, both valued at PLN 560,000,” Polish business daily, Puls Biznesu reported.

Robert C.’s clients invested between PLN 1,500 and PLN 73,000 in the fraudulent para-bank. They were promised returns in 36 tranches at PLN 316 each. To start with Nova New paid out the funds to investors, later it halted all payments and refused to return the invested capital.

Some 50 individuals are believed to have fallen prey to the para-bank’s activities.

The accused did not admit to the crime. He is currently serving a sentence for previous para-bank activities. If convicted on the Nova New charges, Robert C. could spend a further 10 years in prison.

Nova New was reportedly active on the market between Dec. 2011 and Sept. 2012.

An investigation into the company’s activities was launched following a treasury audit.

Poland has been plagued by para-banks luring clients with lucrative returns only for the funds to disappear in financial pyramids. The largest sandal to date involved Amber Gold, accused of embezzling some PLN 53 mln from its clients in mid-2012. The scandal brought to light negligence in controls over banking and lending companies in Poland.

As many as 133,000 Polish citizens have been victims of financial pyramids in the last five years, according to a recent report by the Prosecutor General.