Prosecutor presses charges in Buda-Cash broker case

Budapest, April 4 (MTI) – The municipal prosecutor of Budapest has pressed charges against five people in connection with large-scale fraud involving now defunct brokerage firm Buda-Cash.

Tibor Ibolya, the prosecutor, told a press conference on Monday that Péter Varga and his suspected accomplices are charged with conducting a series of organised fraud, embezzlement and other crimes.

The prosecutor said that Buda-Cash had caused its clients damages totalling 115 billion forints (EUR 368m). Answering a question, he added that the case had no political dimensions.

According to the indictment, the suspects, who were among the owners of Buda-Cash, used the deposits and securities of their clients to their own benefit, embezzling a part of those assets. The suspects have also transferred some of the funds to offshore companies.

With regard to the fact that the crimes were committed in an organised way, the suspects are facing imprisonment of up to 25 years.

In February, the prosecutor raised charges in a similar brokerage scandal related to brokerage Quaestor, a company which went bankrupt last year after it was found to have sold some 150 billion forints (EUR 483.5m) of unsanctioned bonds.

Source: http://mtva.hu/hu/hungary-matters