This is the false document that Parex Bank filed with the London Stock Exchange in May 2010.

The document claims that all Parex shareholders have equal status.  However, in reality the European Bank for Reconstruction and Development (EBRD) had a higher status because it had a secret “put option” negotiated with the majority shareholder, the Latvian government.

This is the most likely explanation why, when Parex split into “bad bank” Parex and “good bank” Citadele, the only minority shareholder receiving Citadele stock was the EBRD.

Sadly, the false filing is unlikely to result in legal action.  The British Financial Services Authority (FSA) knew about fraud and money laundering crimes at Parex for many years and chose to take no action while Parex borrowed hundreds of millions of euros in London.  That money disappeared and the loans were paid back by the Latvian government using bailout money borrowed from the European Union.

This story has been completely censored in the Latvian media.

pdf snapshop from 20 March 2012:

false London filing