2024-10-05 15:54 update: 2024-10-05, 15:55
Photo: PAP/Maciej Kulczyński
Former Polish MP and businessman Janusz Palikot was conditionally arrested for two months on suspicion of fraud and embezzlement, by an order issued by a court in the southwestern city of Wroclaw on Saturday.
The court's decision was reported by Palikot's attorney, Jacek Dubois, on Saturday afternoon. He said that Palikot will be released if he pays a bail of PLN 1 million (ca. EUR 232,000).
But later in the day, Lukasz Kudyk, a prosecutor from the Wroclaw branch of the National Prosecutor's Office said that prosecutors filed an objection to the court's decision to allow Palikot's release on financial bail.
Palikot, along with two associates, identified only as Przemyslaw B. and Zbigniew B., was detained by Poland's Central Anti-Corruption Bureau (CBA) on Thursday. The detentions took place in the eastern cities of Lublin and Bilgoraj.
On the same day the three were escorted to the Wroclaw Prosecutor's Office for questioning.
On Friday, prosecutors filed eight charges against Palikot, including seven counts of fraud and one of embezzlement, said Katarzyna Calow-Jaszewska from the National Prosecutor's Office press department.
Prosecutors also requested that the suspect be held in pre-trial detention based on two premises, the risk of obstructing justice and the fact that the alleged offence is punishable by up to 20 years' imprisonment.
Przemysaw B. was charged with three counts of fraud and one count of embezzlement, while Zbigniew B. was charged with fraud. The two were released with restrictions, including financial guarantees, a ban on leaving the country and on contacting any witnesses.
The charges brought against the suspects stem from their alleged fraudulent schemes in the years 2019-2023. They involve misleading over 5,000 investors to an unfavourable disposal of property in connection with the issue of Series B shares by companies from the Capital Group owned by the suspects and through promotional loan campaigns organised by them.
According to prosecutors, false information was provided to investors on how their money would be used and on the actual financial condition of the companies involved.
"The invested funds were not allocated for the purposes indicated in the issue documents, but were spent to cover pre-existing liabilities of companies from the Capital Group that were in a bad financial situation," said Calow-Jaszewska.
The total amount of damage caused by the fraud is estimated at PLN 70 million (EUR 16.2 mln), she added.
Palikot and his associates also face an embezzlement charge related to the unauthorised sale of alcoholic beverages worth over PLN 5 million (EUR 1.16 mln).
"After their contract with a business partner was terminated, the suspects did not return the alcohol but stored it in their warehouses and later sold it to outside parties," Calow-Jaszewska said.
On Saturday, Palikot's attorney announced that he would notify Poland's Bar Council and ombudsman about a suspected crime by CBA officers and the national prosecutor regarding the disclosure of attorney-client privilege and abuse of power.
Dubois said that upon detention, CBA officers confiscated Palikot's mobile phone containing correspondence between him and his client and made a report of it to the prosecutor in charge of the case.
"Attorney-client privilege is sacred," he added. (PAP)
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