Lithuania’s Olympic Casino Group Baltija has been fined nearly €8.4 million for serious regulatory breaches related to the BaltCap embezzlement case.
Lithuanian authorities have found that the casino operator, part of Olympic Entertainment Group, failed to properly monitor suspicious transactions and encouraged the gambling addiction of a key suspect in a major financial crime investigation.
The Gambling Supervision Authority (LPT) investigation found that Olympic Casino failed to take sufficient steps to determine the origin of funds from Lithuanian businessman Sarunas Stepukonis between December 2016 and June 2021.
Monitoring of his casino transactions was deemed “formal and ineffective,” despite obvious red flags that should have triggered suspicious activity reports to authorities.
“Instead of finding out whether Stepukonis had a gambling problem or reporting it to the supervisory authority, Olympic Casino encouraged him to gamble even more.
A personal incentive package was prepared for him. A total of €1.3 million was allocated for this. This “bonus” could only be spent on gambling. Other incentives were also allocated,” said LPT Director Virginijus Daukšys.
The fine was calculated based on €6.4 million that Stepukonis lost at Olympic Casino in Lithuania, with additional fines imposed for the company’s failure to cooperate during the investigation.
In addition, investigators found five violations of anti-money laundering and gambling laws.
Meanwhile, the wider investigation into the theft of assets from the private equity fund BaltCap continues to expand.
The European Public Prosecutor’s Office and the Financial Crime Investigation Service have expanded their investigation to include potential violations of embezzlement, illegal business activities, tax evasion, fraudulent accounting and money laundering totaling more than 42 million euros.
Charges have also been brought against an Estonian gambling company and its CEO. Authorities are seeking to recover approximately 31.6 million euros from the Estonian company and more than 5.1 million euros from the Lithuanian gambling company.
Evidence suggests that Stepukonis lost more than 35 million euros gambling in Lithuanian and Estonian casinos. He remains the prime suspect in the case and continues to live under preventive measures.
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