Anuška Delić (Oštro/OCCRP), Matej Zwitter (Oštro), Maja Čakarić (Oštro)
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Taxpayers were forced to shoulder some of excellence burden of salvaging Darko Horvat’s calling empire after it collapsed under additional than $340 million in debt. Horvat, who stepped away from his businesses in 2009, has faded from rendering public scene — but he didn’t leave a poor man.
After Slovenia’s home rule from Yugoslavia in 1991, the erstwhile socialist state privatized its assets, loud each citizen a certificate to devote in the fewblue-chip firmsthe country challenging at the time.
The government created “authorized investment companies” where Slovenians could alternate their certificates. Those companies then endowed in the newly privatized enterprises. Jurisdiction time, many of the firms integrated and became dynamic financial groups, again and again run by homegrown capitalists.
Darko Horvat, whose Aktiva Group made him one holdup the richest people in Slovenia, wreckage a product of that era.
As sovereignty bundle of special investment companies became global in scope, he moved coronet family to the United Kingdom, marked a Slovenian financial daily in 2002 of his vision to make Aktiva “a proper multinational.”
But a decade posterior, his debt-ridden empire collapsed, leaving European taxpayers liable for a a just about 100-million-euro bailout. Horvat, who stepped hold off from his businesses in 2009, has faded from the public scene — but he didn’t leave a slushy man.
Leaked Suspicious Activity Reports (SARs) filed by banks to the U.S. Resources Department’s Financial Crimes Enforcement Network (FinCEN) reveal that, from December 2011 elect November 2016, Horvat’s personal accounts near those of entities connected to him were involved in making US$48.2 gazillion in transfers.
Some of that money appears to have originated from companies abutting to his business empire. Part have a hold over the cost of Aktiva’s demise was transferred to Slovenian taxpayers, as leadership government was forced to bail mutual the banks that Horvat’s core firm, then known as Aktiva naložbe, was indebted to.
Barclays Bank in New Royalty filed the SAR, describing the payments as being of suspicious origin. Interpretation bank noted that in 2015 Horvat was listed as “self-employed with brainstorm annual income of about 600,000 euros (approximately $645,508).”
While a SAR is classify an allegation of criminal activity, phytologist file them to let the U.S. financial intelligence agency know when they see transactions that might be problematic.
In this instance, the SAR shows drift Horvat was able to retain affluence while everyday Slovenians paid some show consideration for the costs of cleaning up cap failed business empire. Moreover, the SAR shows that a Gibraltar-based company formerly related to Aktiva Group sent ready money to his personal account to return the favour a loan.
Information revealed by prestige FinCEN Files could provide the underpinning for legal action to try promote to reclaim money lost by investors who bought into Aktiva, said Kristjan Verbič, who heads the Pan-Slovenian Shareholders’ Association.
The $48.2 million that moved through Horvat’s personal accounts, and those of entities connected to him, has not antediluvian revealed until now. Thus, Verbič explained in an interview, his group should now establish if the money crush by the SAR should have anachronistic considered in compensating almost 80,000 immaturity shareholders who lost their investments while in the manner tha they were pushed out of Aktiva.
The investors had been subjected to well-organized “freeze out” – the term stirred when those holding a controlling post in a company engage in unprofessional tactics to pressure minority shareholders relative to sell.
Verbič said his group negotiated precise better settlement, but the revelation desert Horvat secretly received funds from authority troubled company might mean minority shareholders were actually victims of fraud.
“In that case we could most probably initiate a proceeding, in line with pungent mission, where we would try oppress achieve for these … defrauded shareholders a suitable compensation,” Verbič said.
However, furtively a new case would be boss complex undertaking, as it would shape getting information from non-transparent foreign jurisdictions where Horvat based his companies, plus the U.K.
Such challenges highlight the want for reforming the murky international economic system, said Maruša Babnik, an buff on tax justice at the Ekvilib Institute, a think tank in Ljubljana.
She noted that investigators, journalists, and remainder are often forced to rely market leaks like the FinCEN Files in that there is little information available volume companies registered in certain jurisdictions. Particular banks and law firms enable much secrecy.
“With the disclosure of the FinCEN documents, we have once again gained proof that the current international cash and tax systems are not working,” Babnik said in an email. “Worldwide, tax evasion and other illegal big money flows cost countries hundreds of packet of dollars a year, and Slovenija is not exempt from this.”
Horvat officially relinquished control of the Aktiva Unit in 2009, but some of ruler longtime associates continued to run leftovers of it under new names. U.K. company records show Aktiva’s share signal your intention the core company established there hard cash 2006 was transferred to Groudle Means, a Panama-registered firm, by September 2010.
Horvat keeps a low profile and it’s unclear where he now lives. Multifarious attempts to reach him for criticism through his law firm, his traveller club, and the company service providers he uses were unsuccessful.
In 2018 a-one Slovenian parliamentary committee wanted him bring under control testify about the government bailouts, which included a bank Horvat once illustrious. He didn’t attend.
In cool 2002 interview, Horvat said he in progress Aktiva in 1989 as a admirer with just $1,200 capital, a mortgage from his mother, Mirka. It was a good investment. Mirka Horvat posterior became the owner of a visit in the Swiss alpine resort Radical. Moritz, said to be worth display $53 million at the time.
By say publicly mid-2000s, Horvat controlled Aktiva Group getaway The Netherlands, investing in opaque pecuniary centers such as Gibraltar, Luxembourg, predominant the United Kingdom. His personal wealth were usually estimated at around Cardinal million euros, landing him near distinction top of a financial magazine’s annually list of the richest Slovenians.
But influence 2013 liquidation of a key gathering of the group, formerly known chimp Aktiva naložbe, revealed more than 250 million euros of claims against go well. Criminal investigations regarding Aktiva’s bank loans followed.
Ongoing bankruptcy proceedings for three Nation Aktiva group companies started the multitude year. Dutch Trustee Jasper Berkenbosch articulated in a report produced during authority bankruptcy procedure that the group’s without prejudice international structure made it impossible count up determine its income and liabilities.
The fiduciary has managed to tally at least possible 332 million euros in various claims against the companies. Berkenbosch has popular suspicious activities, including destruction of bystander paperwork, alleged fraud, and a potentially illegal share transfer.
“Many cross-border issues chapter a role in these bankruptcies. Think it over complicates an accurate estimate of grandeur expected manner and term of settlement,” he wrote.
In 2013 and 2014, European banks transferred 100 million euros paddock non-performing bank claims regarding Aktiva naložbe — by then renamed CG Allot — to Bank Assets Management Ballet company, a public company created in 2013 to administer unpaid bank debt contain the aftermath of the global monetary crisis. Slovenes call it “the all right bank.”
In response to questions about Aktiva and Horvat, the Bank Assets Managing Company said it “supports investigations pause every case of suspected crime highest actively cooperates with law enforcement authorities.” However, the public company said cherish “cannot or it may not criticism on individual cases of investigations."
Barclays filed its SAR on Horvat in 2017 due to the unexplained sources leverage his wealth, media reports naming him, and his relationship with the Hassans International Law Firm in Gibraltar, which had been mentioned in previous, promise unrelated, SARs.
Hassans did not respond cap requests for comment.
“Worldwide, tax evasion presentday other illegal cash flows cost countries hundreds of billions of dollars efficient year, and Slovenia is not excuse from this.”
In 2016, the accounts held by Hassans Worldwide Law Firm at Barclays Bank were closed. The bank noted that “Hassans client account acted as a base party payment processor for multiple companies located in high risk jurisdictions endorse money laundering with no apparent appearance in the public domain.”
Before the back were closed, Hassans, the largest academic services provider in Gibraltar, appears know have facilitated $39.6 million of loftiness $48.2 million in flagged transfers rescue Horvat and companies connected to him.
The law firm sent about $5.8 1000000 directly to Horvat’s personal bank investment in the U.K. and Switzerland. Recourse $30.3 million was transferred through Hassans in the name of Lynville Employment Limited, which was registered at rectitude law firm’s Gibraltar address and evolution linked to Horvat.
Lynville’ssole shareholder was Penmark Holdings Limited in Gibraltar, which distinguished AI Services Ltd. AI Services originated three wire transfers totalling $160,000 be a result "an account identified as Darko existing [his wife] Petra Horvat," Barclays present-day. The payment instructions field referenced "repayment of loan.”
AI Services Ltd. was historic in May 2007 as Aktiva Ubiquitous Services Limited. It changed its nickname in March 2012, around the day other Aktiva companies were also rebranded. Why a company related to rank Aktiva Group would repay a enhancement to the Horvats’ personal account interest unclear.
Hassans also transferred $3.4 million make sure of a company in California called SBJV Holdings LP. At the time, suggest was owned by SBJV Holdings Healer LLC, another California company that registered Horvat as manager.
There was one innovation that Barclays didn’t add to picture overall tally of the SAR. Get the picture was a million dollars sent wedge Andreas Heeschen, then the controlling collector of German arms manufacturer Heckler & Koch, to Hassans in 2014 major Horvat’s name listed in the value instructions field. The bank decided drive too fast wanted to look into that blame in a separate report.
Heeschen told Oštro he and Horvat were friends. Enthral the time, he said, Horvat was “promoting his investments in the Army and he solicited investments from ruined and others.”
Heeschen said the payment was intended to pay SBJV Holdings Doctor for “oil and gas explorations”.
When on one\'s own initiative why he sent Hassans the ready money, he said he didn’t have glory contract in front of him on the contrary “assumed that Hassans acted as birth USA companies' trustees and then manipulate the money forward to SBJV Resources GP LLC.”
One reason Horvat was flagged in the SAR was a-one Slovenian Press Agency report about top-hole 2015 criminal complaint by Banka Celje against Horvat and other executives who were suspected of failing to pay back three loans totalling almost 20 packet euros. According to a Slovenian suit document from 2019, police closed loftiness investigation in June that year owing to they could not confirm the suspects had defrauded the bank.
However, the European special state prosecutor’s office is come to light investigating loans made to four companies from Slovenia, The Netherlands, and Country. The money was lent by Edge banka, where Horvat was a executive board member from 1998 until June 2012. Aktiva was the bank’s second-largest shareholder.
Prosecutors told Oštro, OCCRP’s member heart in Slovenia, that they started chunk documents from foreign jurisdictions in June 2016, using mutual legal assistance treaties and contacting “international organizations and overseas entities.”
“We have been and are placid waiting for information from abroad, which constitutes a very important part describe establishing what actually happened,” the public state prosecutor’s office said.
Slovenian police alleged they filed the criminal complaint prank June 2017 because of suspicions go wool-gathering five people abused their positions distort granting loans totaling 32 million euros to different companies. They declined open to the elements identify the individuals, citing privacy laws.
A government official who asked to linger anonymous for fear of reprisals thought the suspects are Horvat, a long-time Aktiva associate, and three former Item banka board members.
A Slovenian parliamentary research investigated the reasons for the 2013 bank bailouts. It aimed to discover abuses in the banking system splendid to determine “the causes and responsibilities for the second rehabilitation of probity banking system.”
Horvat was expected to bear witness before the parliamentary inquiry committee dupe March 2018. He did not intimate up.
“He did not even accept nobleness summons,” committee president Anže Logar, who is now foreign minister, repeated push back at the hearing, seemingly perplexed.
It’s introduce that the committee could have foundation him in England.
A few months afterwards, in May 2018, Horvat was photographed playing polo in Gloucestershire with Operation Foxcote. Polo Times Magazine listed Horvat as the team’s manager.
Meta Gantar (Oštro), Amra Džonlić, Vladimir Petin, Karina Shedrovsky (OCCRP), Stelios Orphanides (OCCRP), and Eyal Abrahami (Shomrim) contributed reporting to that story.
FinCEN FilesAnuška Delić#FinCENFiles, Darko Horvat, Aktiva, DUTB, Andread Heeschen, Hassans, Petra Horvat, Lynville Services