Home Page
 
News 12 Oct 12

Romania Investor Vanishes With Clients’ Millions

The hunt is on for Cristian Sima, who appears to have unexpectedly vanished, taking with him large amounts of his clients' money.

Marian Chiriac
Bucharest

Romanian Police and the Securities Commission, CNVM, on Thursday started investigations following information that Cristian Sima, a leading investor on the capital market, has left the country taking clients’ money with him.

His last known message was on October 1, when he told a friend that his laptop, phone, documents and bank card had been stolen and when he asked them to be blocked. After that, no one has got hold of him.

Media reports say that Sima, owner of WBS Holding brokerage firm, may have taken up to 10 million euro from his clients’ accounts.

Former ministers and businessmen are among those affected by his sudden disappearance.

“It seems that I’ve lost a considerable amount of money,” Daniel Daianu, a former Finance Minister, who is one of WBS Holding’s clients, commented.

WBS Holding, a company which deals with transactions on international markets for its clients, is registered in the Virgin Islands.

The CNVM has told clients who believe they lost money to submit complains, but at the same time it has reminded them that WBS Holding was not under the CNVM’s authority, as it was not an authorized broker in Romania.

Sima was a trusted investor in Romania's small capital market. Besides owning WBS Holding, he was general manager of the Sibiu Stock Exchange – Sibex, the main stock exchange for the derivative market in Romania.

Analysts say that the case will undermine public trust in the Romanian capital market.

“There are only two possible explanations: Sima either lost his clients’ money and left the country, or simply took the money on leaving - but neither explanation is good for the local capital market, where credibility is the main factor for any investor,” financial analyst Cristian Barsan said.

The Romanian capital market is still immature, experts say, mentioning the low capitalization of the stock exchange as well as last year’s fall in the price of most shares listed.

Government plans to use the stock exchange to sell stakes of 10 to 20 per cent in a number of enterprises, mostly in the energy and transport sectors, have been postponed indefinitely.

Talk about it!

blog comments powered by Disqus

Related Headlines:

europe-s-balkan-hour-03-23-2017
23 Mar 17

Europe’s Balkan Hour

As EU officials seek to rediscover and re-engage with the Balkans, we bring a series of articles on what the EU should and should not be doing in the Balkans, along with a variety of stories picked from across the region, not least one about Bosnia’s ‘pyramids’.  

23 Mar 17

Albania Reforms Senate Caucus to Boost US Ties

23 Mar 17

Kosovo MP's Move to Cut Jail Terms Slated

Premium Selection

bosnia-s-pyramids-get-celebrated-from-unusual-perspective-03-23-2017
23 Mar 17

Bosnia’s 'Pyramids' Get Celebrated from Unusual Perspective

Brussels-based photographer Thomas Nolf embraces Visoko’s famous so-called pyramids for offering a divided country a positive ‘ground-up’ version of history.

romania-accused-of-inaction-over-slavery-in-italy-03-22-2017
23 Mar 17

Romania Accused of Inaction Over ‘Slavery’ in Italy

After the latest UK media exposure of the slave-like conditions endured by Romanian migrant workers in Sicily, the government has been accused of making an inadequate response. 

22 Mar 17

Vanished Mural Sparks Protests in Novi Sad

22 Mar 17

Belgrade Tween Conquers World of Music