Prosecutor's Office overrules police and orders investigation into Mol executives' case
The Budapest Police Headquarters rejected the complaint, but the Metropolitan Prosecutor's Office has now ordered an investigation into the stock market transactions of three Mol executives.
Prosecutor's Office overrules police and orders investigation into Mol executives' case
The Economic Crime Division of the Budapest Police Headquarters terminated the proceedings on 9 April, stating that there was no suspicion of a criminal offence. However, on 9 June, the Metropolitan Prosecutor's Office annulled this decision and ordered an investigation – reports Telex.
According to the suspicion, three Mol executives – Anthony Radev, Zsigmond Járai and Ákos Székely – sold shares worth a total of 1.4 billion forints at the beginning of the year. The timing of the transactions raised concern: the sale of the shares took place between 27 January, when Russia attacked the Friendship oil pipeline, and the official Mol announcement on 16 February.
The company executives divested themselves of 91–100 per cent of their portfolios on single trading days. Mol only informed investors on 16 February, after the close of trading, of the cessation of oil deliveries, despite the Ukrainian side having suspended the contract on 27 January.
The complaint was filed by a private individual who initiated proceedings based on news reports in the press. The police investigated for a month and then rejected the submission. The complainant subsequently appealed, which the prosecutor's office found to be well-founded.
The National Bank of Hungary signalled on 24 February that it was investigating the transactions. Mol's defence is that after the attack they did not know when the pipeline could be restored, so there was no information available that would have influenced the decision to sell.
Source: Telex