Businessman and former political power broker Vladimir Plahotniuc received on April 22 a 19-year sentence for five counts including the appropriation of $39mn and €3.5mn as part of a criminal organised group responsible for the 2014-2015 bank fraud known as the $1bn bank fraud.

Plahotniuc led the Democratic Party (PDM) from the end of 2016 to mid-2019, when he fled the country. He was extradited last year on fraud accusations. 

Both the prosecutors, who asked for a 25-year sentence, and Plahotniuc’s lawyers, who pleaded not guilty, are considering appealing the sentence, according to NewsMaker.

Prosecutor Alexandru Cernei said he would examine the court's arguments regarding the leniency of the sentence.

"Vladimir Plahotniuc was found guilty on all five counts. He was sentenced to 19 years in a closed prison. We requested 25 years … We will analyse the court's arguments and decide whether to appeal the verdict," he said.

The defence also intends to appeal the verdict. Lawyer Lucian Rogak argued the trial was marred by numerous violations.

"We consider the court's decision unlawful and will exercise our right to appeal it. We didn't expect a different ruling, given that the entire process was marred by serious violations," he said.

The theft of approximately €1bn from three Moldovan banks—Banca de Economii, Banca Sociala, and Unibank—was revealed in late November 2014. Following this, the National Bank placed the banks under special management, and the authorities subsequently decided to liquidate them (the process is still ongoing). 

At the same time, the National Bank issued government-guaranteed loans to the banks equal to the amount stolen — approximately MDL14bn, or approximately €1bn at the exchange rate of the time. The debt was later included in the public debt by the government issuing state bonds

In the main count related to the bank frauds, the prosecution’s weak point seems to be demonstrating the existence of an organised criminal group — a loose concept that allowed the prosecutors to link the money received by Plahotniuc from companies controlled by fugitive businessman Ilan Shor — directly involved in the activity of the banks.

On March 25, Plahotniuc delivered his closing statement in court, reiterating that Shor didn't need assistance in gaining control of Banca Sociala and Unibank, two of the three banks subject to the frauds. He claimed that Shor purchased shares in these banks in small stakes of up to 5%, without requiring permission from the National Bank.