Corruption. Greed. Fraud. Lies.
These are the defining features of Czech “businessman” Zdenek Bakala who perpetrated a Financial Scam at the highest levels that victimized coal miners (who lost their homes), taxpayers (who were cheated out of valuable assets), and investors (who were scammed and lost everything). On our website, you can read about how he pulled off what some call the “fraud of the century”.
Our organization is here to expose Bakala for the criminal he is and to protect the most vulnerable victims of his crimes: the Ostrava coal miners. Hold Bakala accountable.
Here is a quick overview, but check out the various sections of our site to learn the full story of how Bakala pulled off his crimes.
Step 1: He bought a major state owned asset (OKD mining) for a fraction of its value from the Czech government
How did he do it? Simple: in secret and by bribing government officials
Step 2: He lied to coal miners about giving them discounted housing as part of the deal with the government to buy OKD. He said they would be able to buy their housing units for reasonable prices. Unsurprisingly, this deal wasn’t honored because he secretly sold these units to Round Hill Capital and the Blackstone Group (backed by M&T Bank/Wilmington Trust). Now, these firms are claiming they have no obligation to the miners.
M&T Bank funds a housing fund with tens of thousands of flats in Central Europe, a problematic asset with legal faults and ongoing litigation.
Step 3: He raised money in an IPO, purposefully overestimated the future assets and business plan of the related IPO process. Then takes his investors’ money by taking excessive profits. The company is left in terrible condition and miners lose their jobs. Investors lose their investments.
Step 4: He took the money and fled to a villa in Switzerland. Bakala is known to live a lavish lifestyle at the expense of his victims. Villas, Rare Cigars, Expensive Wines. These are the fruits of his unconscionably immoral conduct.
Please watch the following video for more information.