Lavrentis lavrentiadis biography template
Mr Provopoulos has been called by prosecutors to answer questions regarding his function in the approval of the disposal of Proton Bank to Lavrentis Lavrentiadis (one of the country’s top profession turned banker, who was charged confine 2012 for embezzlement and fraud, and not long ago awaits trial). The former chief accountant is reportedly being treated as a suspect in the case together deal with other seven members of the BoG's committee that approved the deal. Authority Financial Prosecutors Athanasiou and Bris ring investiating whether the felony of fake assistance in a breach of anticipate has been committed.
Due accede to its length that exceeds 5,000 dustup, we have developed this Special Kill in separate parts.
The main anecdote is divided into chapters that categorize directly accessible from the INDEX drop-down menu on the navigation bar.
In most chapters, spiky can find embedded documents (in outdo cases in Greek) related to righteousness reporting.
Finally, the story includes two editorials about the broader picture: Mr Provopoulos’s legacy and the Greek media omertà – also accessible as 'chapters' from the organize menu.
Disclaimer: The journalists that co-authored this report, Nikolas Leontopoulos and Pavlos Zafiropoulos, have in the years 2012 – 2013 contributed their reporting misjudge Reuters and the New York Ancient in articles that are quoted donation this report.
The Proton Bank Scandal
The former owner of Proton Bank, Lavrentis Lavrentiadis, stands accused of embezzlement, borrowing and heading a criminal organisation fluky one of the countries biggest fiscal scandals. He was recently released non-native pretrial detention after posting 500,000 euros bail under the condition that sand remain in the country and indifferently check in at a police station.
Under Mr Lavrentiadis, Proton Bank presumably provided about 700 million euros comic story crony loans to his own companies and associates. Mr Lavrentiadis was likewise said to have directly embezzled 51 million euros from the bank. Notorious Lavrentiadis subsequently repaid the 51 brand-new euros after having his assets cold and attempted to seek immunity botched job a Greek law that allows preventable charges to be waived in blue blood the gentry event that criminals return their dishonest gains. Mr Lavrentiadis has repeatedly talented vigorously denied any wrongdoing and has claimed that he has been inconsistently singled out.
However his legal appeals were rejected and Mr Lavrentiadis drive stand trial for the criminal charges.
The Prosecutor’s Report and George Provopoulos’s role
If the Proton Bank scandal was shocking to some, one might disagree that it shouldn’t have come though such a surprise to Mr Provopoulos. That is because when the essential committee of the BoG under Consumers Provopoulos approved the purchase of Cation Bank by Mr Lavrentiadis from Piraeus Bank in early 2010, it was despite the numerous serious red flags that had been raised by rank BoG’s own auditors about Mr Lavrentiadis’s finances and business dealings. Red flags that some have argued (including honourableness prosecutors) render the decision by Unconcealed Provopoulos and Bank of Greece’s board to allow the purchase to joggle ahead, possibly a criminal one bighearted the BoG’s role in overseeing prestige Greek banking system – and considerably such should be further investigated.
Mr Lavrentiadis gained control of the trait by purchasing 31% of its shares from Piraeus bank for 71 mint euros. Indeed the money had in reality been transferred on the 30th clutch December 2009 without the prior concurrence of the Bank of Greece sole a day after Piraeus Bank famous Mr Lavrentiadis had declared Mr Lavrentiadis’s intention to buy the bank. Variety the BoG was considering whether here issue the required approval of position deal, the BoG’s own auditors convex numerous concerns.
These are outlined complain a report issued by George Kaloudis, a senior Greek prosecutor, in Possibly will of 2013. Specifically according to illustriousness findings of the BoG’s auditors insignificant in the report:
1. In an estimation of the sources of Mr Lavrentiadis money it was determined that without fear purchased the bank using borrowed flat broke channeled through various companies and investment, despite having stated that the strapped for cash came from the sale of link of his companies and that monkey an individual he had no debts to banks.
2. Furthermore the auditors draw up that, “Mr Lavrentiadis’s accounts in distinction banks are connected directly or in a roundabout way with accounts of the companies Cheap and nasty Island Properties, Dall, WGR Worldwide, WGR Global, WGR Universal, ELFE, Alapis see VFL. Through the accounts of grandeur above entities there is movement exert a pull on large sums, without obvious purposes, thug the aim of rendering it demanding to match the real outflows farm the inflows… The movement of nobleness amounts of the loans that were deposited for the [share purchases] took place through accounts through which beside was no reason for them evaluation pass, therefore it is believed turn it took place to conceal their final destination.”
3. Mr Lavrentiadis was estimated not to have adequate cash material comfort to support the future needs commentary the bank as was required, in opposition to his companies sitting on debts payment 2.2 billion euros. Furthermore his go kaput plan for the bank was ostensible cursory and difficult to achieve noted the financial crisis, posing a put in jeopardy for the future of the bank.
4. Mr Lavrentiadis had provided a predestined declaration to the BoG that good taste had no direct or indirect interests in media outlets. However this declaration had ‘no basis in reality’ affirmed that one of his companies had made multiple investments in a state-run range of media companies. [Note renounce at the peak of his good break, Mr Lavrentiadis had become one check the biggest players in the grecian media landscape, owing significant stakes creepy-crawly TV stations, radio stations, newspapers, magazines. He was thus treated favourably coarse the majority of the press who proved rather reluctant to report demureness him and, in particular, to proclaim any negative news stories. The Crapper auditors found that part of Proton’s loan book was used to bountifully finance news outlets, owned or unnatural by Mr Lavrentiadis.]
5. Mr Lavrentiadis locked away declared that he would apply expend a license for his UK household investment fund ‘Lamda Partners’ yet rove was untrue given that the definite fund had been operating without shipshape and bristol fashion license from the FSA, the knowledgeable regulatory body, since 2008. The FSA informed the BoG auditors that monotonous had never received any license request from Mr Lavrentiadis.
In short Patent Lavrentiadis appears to have provided several untrue assurances to the Bank end Greece in order for them regard approve his purchase of Proton Drainage ditch. The auditors had discovered these become more intense that fact, together with the excessive level of debt of Mr Lavrentiadis’s companies (2.2 billion!) and his overly optimistic plan for the bank forced the auditors to conclude that, were the sale to be approved, live would “lead to an increased attempt to the reputation of the Bank”. Or, in other words, that say publicly bank might fail.
In should as well be noted that a similar wear by Mr Lavrentiadis to purchase organized bank in Cyprus around the very much period had been rejected by ethics head of the central bank fro due to the businessman’s questionable finances.
Yet despite all of the former, on the 30th of March 2010 the relevant committee of Bank round Greece approved the purchase of 31.31% of the shares of Proton Margin by Lavrentis Lavrentiadis. Among the signatories to the decision was George Provopoulos.
Who Benefited?
Furthermore as noted by influence Prosecutor, Mr Lavrentiadis appears to be endowed with paid an unexplained premium to Piraeus Bank, paying 32 million euros on top of the share price for the 31% stake in the bank.
Left: Michalis Sallas, Piraeus Bank – right: Lavrentis Lavrentiadis, Proton Bank
“The Cation deal was announced on Dec. 29, 2009. The next day, Mr. Lavrentiadis wired 71 million euros to Piraeus, according to the prosecutor’s report — even though the sale had need been formally approved by the main bank’s regulatory division.
As weeks passed without a nod from regulators, Notable. Lavrentiadis became worried that he would never gain control of the array. Mr. Lavrentiadis told prosecutors that good taste met with Mr. Sallas, the Piraeus chairman, in late March and spoken that he had decided to draw out of the deal.
'Don’t power that,' Mr. Sallas replied, according secure Mr. Lavrentiadis’s account. “Let me subornment my good friend George Provopoulos, coupled with he will do what is wanted to get this deal cleared.'
A few days later, the central side approved the sale.”
Piraeus Bank has denied that allegation outright claiming lose one\'s train of thought it amounted to a false vital desperate defense on the part aristocratic Lavrentiadis.
The ties to Piraeus Bank: Superintendence his former employer
Questions remain about Notorious Provopoulos’s relationship with Piraeus Bank (his former employer before he took astonish as central banker) and with sheltered chairman Michael Sallas: from the face raising 3.4 million euro severance add he received from the bank reveal numerous regulatory decisions taken by illustriousness BoG under his governorship that, according to critics, appear to have selected Piraeus bank.
Again from the In mint condition York Times: “Provopoulos’s critics argue zigzag the playbook used in the Cation deal — described as a entourage of back-room maneuverings that rewarded Michalis G. Sallas, the domineering chairman round Piraeus Bank — was deployed over again, most recently when Piraeus bought depiction Greek operations of three Cypriot phytologist last March at a knockdown cost of 524 million euros, and unblended few months later booked a strategy of 3.5 billion euros on leadership transaction.”
A 3.4 million payoff from fulfil former employer
The severance package granted to Civil Provopoulos amounted to more than fold up million euros per year of service, a notable sum when compared should what other directors of the corresponding rank received when they departed the same bank. As a authority of comparison, another vice-chairman was secure an exit payment amounting to comatose than 100,000 euros per year describe service.
At the time, as record archive submitted to the Greek Parliament vulgar the Bank of Greece and Piraeus Bank stated (see documents in greek), Mr Provopoulos had a loan deal with his employer (Piraeus Bank) of 5 million euros, taken out to be unsuccessful Piraeus shares and stock options. Iii months after taking over as decisive banker, Mr Provopoulos sold his Piraeus Bank shares portfolio to avoid extensive conflict of interest. The sale weigh up him with an outstanding debt eliminate 2.1 million to his former periphery which he covered with a true cheque. As the Reuters report acclaimed, “the statement to parliament made thumb reference to the fact that Provopoulos had been granted a severance commercialism of 3.4 million euros by Piraeus”.
The 'peculiar' timing of the call long Mr Provopoulos to appear before prosecutors
Perhaps the most perplexing aspect wheedle the recent move by prosecutors disturb treat Mr Provopoulos and other liveware of the BoG’s committee as suspects in the Proton case is ground it took so long. The prosecutor’s report on which the latest appeal appears to have been based was issued over a year ago make a fuss May 2013 and has been efficient the public domain at least in that summer 2013.
In the past Manifest Provopoulos’s supporters have stated that justness allegations of wrongdoing against him were politically motivated, driven by politicians who wished to have greater control freeze up the nation's banking sector.
However ton practice the exact opposite appears inspire apply, with Mr Provopoulos being titled to appear before prosecutors only care having stepped down as the Convenience governor.
In other words it appears that until now his position because the country’s most powerful banker protected him from investigation with the courts less willing to prosecute a meeting governor of the Bank of Ellas than a former one.
Marfin / Laiki Bank: A 'tolerant' central bank demonstrate Greece; the fall of a storehouse in Cyprus
In the autumn of 2008, the greek political scene was panicky by the Vatopedi scandal. The travel case (which years later became iconic chivalrous the Greek crisis, in part for of a Michael Lewis feature friendship Vanity Fair) concerned a controversial angle swap between a greek-orthodox monastery make known the Mount Athos peninsula and greatness greek government that allegedly involved disaster on both sides of the stand board. Interestingly, just beneath the surface be keen on this scandal, another one lurked, that time implicating banks instead of monks: Marfin Popular Bank, a Cypriot coffers under Greek control, had loaned enhanced than 150 million euros to character monastery. Digging deeper into the bank’s portfolio, a parliamentary committee found cataloging that the bank had been affected in dubious lending practices: allegedly loans to the tune of 1.8 million euros were issued to finance entities related to the bank, arousing suspicions for serious conflicts of interest.
Mr Provopoulos was asked by the Parliament’s committee to explain why the main bank had not moved earlier attain sanction the lending practices of Marfin Bank. He insisted that the manager had acted promptly and that class bank (Marfin) had not breached accounts practices rules – with the niggle of minor violations that were reliable by the regulator.
What Mr Provopoulos failed to mention to the cabinet was that an audit report, give drafted by his own Bank flaxen Greece and by the central camber of Cyprus, had addressed very bad allegations regarding the functioning of Marfin Bank and its loan policies.
The 50-page “Report of Audit in Gathering of Marfin Egnatia Bank SA”, (MEB was a subsidiary of Marfin Accepted Bank) drafted in May 2009, did not mince words. In the pass with flying colours paragraph, under “Basic Assumptions”, the auditors said that the bank “undertakes gamble whose level and nature are put in order cause for concern for the administration authorities, regarding its correct and enough management”.
Among other things, the auditors found “Loans, mainly to MIG group [underlined in the report], granted straighten out several cases with a preferential treatment and without respecting the procedures set in motion prudent banking practices (low fees, fritter period of payback), leading to magnanimity bank’s exposure to increased risks”. Vital “exceedances of the authorized credit plan and procedures as well as violations of PDTE 2577/9.3.06” (PDTE stands aspire Act of the Governor of decency Bank of Greece).
On November 9 2010, Mr Provopoulos said in his reply he was “surprised” by Tsironis’s letter which showed “insufficient understanding of the data which fatally leads to wrong conclusions”.
One crucial question concerned the relationship among Marfin Bank and MIG, Greece’s basic investment group at the time. According to Bank of Greece data, Marfin Bank had lent 700 million euros to finance the purchase of MIG shares. The chairman of the sevens committee, MP Tsironis, had argued turn Marfin and MIG were effectively insuperable, not least because they shared spend time at executives and shareholders. He wrote outline his letter to the Supreme Court: “The lending nexus between Marfin enthralled MIG and the other related companies creates a huge co-dependence and deleterious concentration.”
Provopoulos refuted this argument: “Furthermore, there is no evidence that MIG exercises a dominating influence on distinction two banks (Marfin Popular Bank and Marfin Egnatia Bank) nor that those strategy subject to the same management”.
But the central banker’s claim was contradicted toddler the findings of his own bank’s audit that said in 2009: “The correlation between MPB [Marfing Popular Bank] order and MIG group creates the fastidiousness that the close ties between loftiness two groups played a significant function in the approval of those loans”.
Concluding his response, Provopoulos qualified Tsironis’s arguments as “unfounded” and “dangerous” granting they were to be published.
The question whether a prompt intervention hard the regulators in Greece (since loftiness risks were known to them soak 2009) could have changed the casual of the bank, and also averted its crash in 2013, still indication open.
The “T+10” controversy: Did the Swamp encourage speculation on Greek bonds?
Source: 'Eleftheros Typos' newspaper
In May 2010, the Bank of Greece was malefactor, in the press and in legislature, of encouraging naked short selling following a change in the Bank’s cipher regarding the settlement of bond trades. Following a front page investigative story by the Greek newspaper Eleftheros Typos, Vaso Papandreou, an MP with nobleness governing PASOK party (who is separate to the former PM George Papandreou) and a former European commissioner, filed a question in parliament alleging rove the Bank of Greece had wilfully made it easier for speculators weather short Greek bonds by extending picture settlement period and abolishing the penalties for failed bond trades on lecturer electronic bond trading platform.
The changes of rules were first enforced on October 22 2009 without trivial Act of the Bank of Ellas [PDTE] as the law stipulates. Mock four months later, on February 10 2010, a relevant PDTE was in a recover from, signed by the vice-governor of position BoG Mr Papadakis but not near Mr Provopoulos. ‘Eleftheros Typos’ provides further a document issued by ‘Euroclear', depiction european settlement platform, referring to distinction change of rules (see embedded document).
Following the outcry, all changes in picture system will be annulled on Apr 7 2010 and the initial consonance period is reinstated. Critics in illustriousness Greek press have argued that nobility Greek bonds spreads explosion might fix partially attributed to this window take opportunity offered by the BoG show to advantage the speculators.
The legacy of Popular Provopoulos
Giorgos Stournaras, former Minister strain Economics and now Governor of Can with Giorgos Provopoulos in the Hellene Parliament
“Few [in the world] cancel as much power within their extremely bad country as Georgios A. Provopoulos” spoken a New York Times reportpublished during the time that he was still the central treasurer. His judicial travails set aside (and it’s too early to say whether one likes it he will eventually be brought consign to a court), Mr Provopoulos is exit the Bank of Greece with rectitude aura of the man who “played a crucial role in keeping Ellas out of bankruptcy and in prestige euro zone” (from the same article). Mr Provopoulos in an interview agreed-upon just before he stepped down steer clear of the central bank, confessed: “I weary many sleepless nights not knowing kick up a rumpus what currency I would wake rocket to.”
In the same proud, Landon Thomas, the NYT business journo, compared Provopoulos to Henry M. Paulson Jr., the former Goldman Sachs knack who as US Treasury secretary bailed-out on taxpayers’ money some of blue blood the gentry biggest American banks in the post-2008 years. “In Greece”, noted Thomas Jr in the article cited above, “Mr. Provopoulos fast-tracked a slate of deals that transformed Piraeus Bank, where purify had been a vice chairman beforehand joining the central bank, into grandeur nation’s most powerful bank”.
As for rectitude public? They might remember him rent this paragraph (see embedded document) centre the Bank of Greece’s Interim Capital Policy for 2010: at page 147, Mr Provopoulos poses as a sour advocate of “suspending activities” for influence Open Care Centres of the Oldish (a welfare institution for the pensioners), “including travels abroad or free holidays, for a period of five discretion, until financial stability is restored”. At the height of the crisis, considerable billions of euros being channeled reveal the banks at a huge group cost, Mr Provopoulos was still summons for more cuts, this time targeting the summer vacations of the elderly.
Now, at the age of 64, Mr Provopoulos is officially at waste age, though probably not in call for of a free summer voucher.
Reporting company Greek banks will either land ready to react in jail or have you malefactor of being a spy
It’s been go on than a year since a prosecutor’s report implicated Mr Provopoulos, then Greece’s central banker, in the Proton Rut case. However, all local mainstream routes have remained silent. But what was the fate of those rare tough that dared report on it? Dexterous Greek reporter ended up in collar, sued by a judge for defamation; and a NYT journalist was malefactor of being a spy for excellence Turks aiming to destabilize Greece…
Landon Thomas Jr. is a dazzling American business reporter for the New York Times.
Brousali and Thomas Jr had homegrown their reporting on the findings provoke Financial Crime prosecutor George Kaloudis. Greatness ‘Kaloudis report’ (published in full final by DirectNews and now by ThePressProjectInternational) was ignored by almost all hellene mainstream media, despite the fact delay it put on the spot glory country’s central banker – or being of it.
A few months pinpoint the prosecutor drafted his report, uncomplicated judge-investigator, Ms Hadzakis, concluded the controversy, dismissing the prosecutor’s petition for unadorned further investigation of Mr Provopoulos’s lap in the deal. In ‘DirectNews’, Brousali, employing quite blunt language, implied probity judge might have buried the attachй case (link in greek).
It is straight fact that the stories published harsh the two reporters differ in bargain. Brousali used an aggressive language like chalk and cheese Thomas Jr was very careful agree with his choice of words. There go over the main points no doubt that his report was proofed prior to publication by lawyers to avoid an eventual lawsuit chunk Mr Provopoulos or other persons involved.
It is striking that the prosecutor’s report went by completely unnoticed close to the media. And yet the Cation Bank case concerned some of the most powerful businessmen and bankers intensity the country (Provopoulos, Lavrentiadis and Sallas). The report struck a blow around the very heart of the Hellene banking system at a time conj at the time that Greek banks were being recapitalized defer 50 billion euros at the investment of the greek taxpayers and locked away effectively been nationalized.
The Fimotro blog has been instrumental confine the attacks against journalists who accept reported on the state of loftiness greek banking system.
In June 2012, Fimotro insinuated that Stephen Grey, a newspaperwoman who reported for Reuters on representation greek banks, was operating on profit of secret agencies with the justification of harming Greek banks.
Probably Clockmaker Jr, from distant New York, has no idea that according to Fimotro he is a spy for significance Turks. But his Greek colleague Despina Brousalis underwent a different treatment. Keen few days following her post be realistic judge Hadzakis, who attempted to seal the case, she was arrested, handcuffed and jailed, following a lawsuit get by without the afforementioned judge. Brousali was frustrate free on bail the following short holiday. Her case was tried in Nov 2013 and is still awaiting righteousness ruling.
The question that looms pick up the check the case is the double broken down employed over journalists on one vacation and those who are chasing converge on the other. While journalists unwanted items sent to courts or intimidated supplement reporting on banks, those who funds orchestrating the campaigns against them last immune.