site.btaCorpbank's Two Conservators Charged with Deliberate Mismanagement

Sofia, May 11 (BTA) - The Sofia City Prosecution Office has brought charges of very serious deliberate mismanagement against two conservators of Corporate Commercial Bank (Corpbank).

Elena Kostadincheva and Stanislav Lyutov were charged with intentional failure to properly manage and protect the property in their care between August 20 and November 6, 2014, which resulted in detriment of 1,070,383 leva to the Bulgarian Deposit Insurance Fund (BDIF).

The two deliberately ordered the early accounting of nine contracts for individual term deposits with a preferential annual interest rate. As a result, the deposits were transferred for payout to the BDIF. These actions were in breach of the Bank Deposit Guarantee Act.

Corpbank, then Bulgaria's fourth biggest lender, suspended all operations on June 21, 2014 after a deposit run left it illiquid. The court declared the bank bankrupt on April 22, 2015.