Brokerage scandal defendant handed 13 years prison sentence

Csaba Istvan Tarsoly was charged with 7 counts of embezzlement and 396 counts of fraud, the court said. The non-binding ruling also barred him from public affairs for 10 years and ordered his detention for 72 hours.

Out of 10 other defendants, another was sentenced to 16 years of imprisonment. Nearly 248 million forints (EUR 631,000) in legal costs will be divided up among the defendants in proportion with their punishment.

According to an earlier ruling, Quaestor head Tarsoly had failed to act in creditors’ interests while carrying out his management tasks, and prevented the payment of at least 11.2 billion forints in creditor claims.

On March 10, 2015, the National Bank of Hungary partially suspended the operating licence of Quaestor Securities and appointed an oversight commissioner to the company due to the irregularities detected there. The previous day, the Quaestor group’s bond issue company, Quaestor Financial Hrurira, filed for bankruptcy. According to the findings of the NBH, Quaestor Hrurira issued corporate bonds of 210 billion forints, of which 150 billion forints may have been unsanctioned bonds.

The group’s securities firm distributed the bonds.

Read more article about the Quaestor brokerage case HERE.