zeekrewardsThe battle between the Zeek Rewards Reciever, Payza, PaymentWorld and VictoriaBank continues…

The latest filing in the long-running saga is from Banca Comerciala VictoriaBank SA.

VictoriaBank want to keep $13 million in stolen Zeek funds, claiming the North Carolina District Court has no jurisdiction over them.

In an attempt to fight off the Receiver’s efforts to recover the $13 million in question, VictoriaBank has lawyered up in the US.

VictoriaBank essentially argues that, in order for them to do the right thing, the Receiver should have gone through the Moldovan courts to obtain an order directing them to turn over the stolen Ponzi money.

That might be arguable in court, if it weren’t for the fact that the Moldovan government wasn’t also investigating PaymentWorld, the holder of the account.

According to a sworn affidavit by Corneliu Popovici, Chief of VictoriaBank’s Legal Department;

On May 13, 2014, Victoriabank received a decision of the National Center for Anticorruption of Moldova (“NCA”) to freeze Payment World Moldova’s banking operations at VictoriaBank for a five-day term.

This decision was immediately complied with by the Bank.

On May 16, 2014, the Buiucani District Court issued a decision which prolonged the freeze of Payment World Moldova’s banking operations at Victoriabank for an additional 30 days.

This decision was immediately complied with by the Bank.

On May 30, 2014, the NCA initiated a formal criminal investigation against Payment World Moldova and on June 2 2014, the Buiucani District Court issued an order to freeze Payment World Moldova’s VictoriaBank accounts for an indefinite term.

This decision was immediately complied with by the bank.

Despite inexplicably continuing to provide banking services to a company tied to an $850 million dollar Ponzi scheme and under investigation by two governments, for almost two years, Popovici insists VictoriaBank is ‘a well-regarded commercial bank in the Republic of Moldova‘.

With PaymentWorld’s VictoriaBank accounts indefinitely frozen, according to Popovici here’s what happened next.

Payment World Moldova’s security/deposit accounts at Victoriabank were closed on November 2,2015.

To clarify, five current accounts, in various currencies, were drawn down to minimal levels (to zero in the Ukrainian Hryvnia, Russian Ruble and Moldovan Lei accounts and to 50 Euros in the Euro account and to USD 93.95 in the United States Dollar account).

Since November 2,2015, there has been no activity in the various current accounts.

How the hell did VictoriaBank transfer funds on “indefinitely” frozen accounts?!

As it stands PaymentWorld, to the best of my knowledge, aren’t contesting the Receiver’s case. Payza aren’t either.

Infact Payza are actively trying to recover funds from PaymentWorld, to the extent they’ve filed their own lawsuit against the processor.

The only party vehemently opposed to $13 million in stolen Ponzi funds being returned to victims is VictoriaBank. And they only called the lawyers in after the Receiver managed to secure $13 million of their assets held in the US.

Otherwise it was the “say nothing and hopefully this’ll all go away” defense.

And what, we’re expected to believe there’s nothing suss going on at VictoriaBank? Please…

I think getting back the $13 million will be struggle enough. But if the Receiver does win, it’d certainly be nice to see a fine or two against VictoriaBank issued.

How do you firstly not detect an $850 million dollar Ponzi scheme operating through your bank. And secondly then continue to provide banking services to the processor facilitating the scheme for two years?

Some crackpot legal department VictoriaBank has working there…


Footnote: Our thanks to Don@ASDUpdates for providing a copy of Banca Comerciala Victoriabank SA’s June 10th non-party reply.