BREAKING NEWS / Lending money at high interest rates: Korçë Prosecutor’s Office sends three people to trial

Prosecutor’s Office Announcement:

The Prosecutor’s Office at the Court of First Instance of General Jurisdiction in Korçë has completed its investigation and has sent to trial the citizens J.K., K.K., and A.G., for the criminal offenses of “Removal of a prisoner from the place of detention,” “Unauthorized financial activities” committed in collaboration, and “Money laundering of proceeds from criminal activity” committed in collaboration, as provided by Articles 323/1, 170/ç/2 and 25, and 287/2 of the Penal Code.

The investigation into criminal case no. 357/2024 revealed that on March 28, 2024, Korçë Local Police Directorate officers found J.K. outside his home, while he was under the security measure of “House Arrest.” This individual had previously been convicted of several criminal offenses, including drug trafficking and the production and sale of narcotics, and was leaving his residence during the day to continue criminal activities.

During a search of his home, authorities discovered and seized a significant number of items and documents, including notarial contracts for the sale and purchase of movable and immovable property, donation contracts, mortgages, pledges, totaling around 92 items and documents, as well as numerous identification documents, cell phones, car keys, vehicles found both inside and outside the property.

The Prosecutor’s Office concluded that J.K., along with K.K. and A.G., through their active and unlawful actions, fulfilled all four elements of the criminal offense of unauthorized financial activity, as provided by Article 170/ç/2 of the Penal Code. They conducted repeated and organized lending activities (formally presented as loans) without a license from the Bank of Albania, securing loans with real guarantees (mortgages/pledges) on movable and immovable property, setting short repayment terms (mostly three months), and transferring funds.

According to the National Business Center (ASHK), the defendants carried out actual lending activities, registering property restrictions on real estate, some of which were transferred to their ownership due to non-repayment of debts. The value of the acquired properties far exceeded the amount lent (over 200,000 euros given as high-interest loans) to a significant number of individuals.

In many cases, collateral such as vehicles valued much higher than the loan amounts (ranging from 1,000 to 2,000 euros) was used, with ownership later transferred to the defendants, demonstrating that loan repayments collected were several times higher than the original loans.

It was proven that J.K. and K.K. signed fictitious vehicle sale contracts with various individuals as collateral for these high-interest loans. When the loans were repaid, the contracts were canceled or new contracts were signed, with J.K. and K.K. appearing as sellers. If loans were not repaid, the vehicles were sold without transferring ownership, a clear example of unlicensed lending disguised as civil agreements to secure repayment.

The investigation also proved that the actions of J.K., K.K., and A.G. constitute money laundering under Article 287/2 of the Penal Code. They transformed and circulated proceeds from criminal activity (unauthorized financial activity, drug production and sale) through movable and immovable property, bank accounts, and registering assets in different names, attempting to give the funds a legitimate origin, conceal ownership, and hinder tracing.

Accounting expert reports on the three defendants’ assets revealed discrepancies and negative balances, showing that their property and financial transactions could not be justified by legitimate income, and that the wealth circulated was clearly the “product” of criminal activity.

The expert reports concluded that the significant value of movable and immovable property in relation to declared income demonstrates that the assets were created from criminally obtained funds introduced into circulation.

“KORÇA BOOM”