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The ‘Snowdrop’ Case: Path of Private Detective

 

Almost 20 years as private detective  is, frankly, a long time. And considering the many complex, dangerous, and critical situations in which private investigators constantly find themselves, balancing on the edge, one could estimate their service in this field to be two years. Moreover, there are no professional social guarantees, no support from the state or law enforcement agencies, but rather constant inspections and counteraction. Except, of course, when a private investigator has reliable protection among high-ranking officials or influential oligarchs. Not all former detectives and investigators can withstand such a regime; they either don’t want to serve the powers that be, or they refuse to carry out paid orders with a criminal taint and quickly leave. I have always worked within the legal framework, and I have encouraged and trained those investigators who worked with me and continue the work to do the same. That’s why I’m always sensitive to indifference, dishonesty, negligence, and even lawbreaking on the part of those who are supposed to protect and uphold it. It was at that moment, when I was at a crossroads: whether to remain a detective or become a lawyer, that some young men approached me about the disappearance of their friend, Sergei N.

As the men told me, Sergei was a successful businessman whose fortunes had recently taken off. He had recently bought a two-bedroom apartment in Imanta, across from the Damme shopping center, a used but still in good condition Jeep, and had a pretty girlfriend, 10 years his junior. Sergei himself was 34 at the time and on the rise.

To his friends’ surprise, Sergei disappeared. He wasn’t answering calls, he wasn’t home, his Jeep was cold, he hadn’t shown up for scheduled business meetings, and his girlfriend, Marianna, knew nothing about it. Two close friends, Sergei’s childhood friends, were seriously alarmed; this had never happened before, and they suspected something was wrong.

After searching independently, the boys went to the local police station where their friend was registered. There, they said, they were held for several hours and weren’t even properly listened to, as the officers were all busy with their own affairs. A week later, the friends returned to the station and insistently demanded that someone take their statements, as they’d been advised. The police officer filed the statement, but warned them that he could also arrest them for suspicion of committing a crime. “If there’s a man, there’s always a charge,” as one famous character used to say.

Soon, their missing person report was formally rejected, implying that no one was actually looking for Sergei N. at all. The boys persisted and, for a third time, contacted the Riga Regional Police Department. To their credit, our applicants were treated more attentively at the criminal and missing persons department than at the district police station. They were shown photographs of unidentified bodies, questioned thoroughly, and also took their statements. However, this registered statement was also forwarded to the same district police station, where it was again denied. Slightly disappointed by the police’s inaction and negligence, Sergei N.’s friends contacted a private detective. It’s logical to ask: why were only his friends searching for Sergei, while no one else in his family showed concern? The fact is that of Sergei’s missing relatives, his father was the only surviving member of his family, having long ago moved in with another family and maintaining no contact with his son. His mother and grandmother had recently passed away and were buried in the family cemetery. Furthermore, his father worked on a ship and was at sea for six months at a time, including this time. Incidentally, one of the formal reasons for the police’s inaction in this case was the lack of a report from the missing young man’s relatives.

When I took on the case, I immediately investigated the following theories: – An accident in Sergei’s area of ​​residence and usual travel, with his possible transfer to a hospital or morgue; – Detention, arrest, and detention in appropriate places of confinement; – He is hiding from debts, threats, and persecution… I won’t bore readers with an abundance of text detailing how I investigated these theories. I’ll just say that I had to find a legal way to inspect Sergei’s car and apartment, interview his friends, acquaintances, and business partners, and trace his entire route from his last meeting with a friend to the time he was supposed to arrive but didn’t show up. Incidentally, all of this should have been done by the police who received the missing person report. But the police were apparently busy with other, more important matters. None of the theories put forward were confirmed, and the worst-case scenario remained: Sergei N. could have been murdered, but the location of his body is still unknown.

Having gathered the initial facts about the possible murder of Sergei N., I went to the head of the criminal police department at the station that had twice refused to initiate missing person proceedings. This time, I was able to insist on my findings, and criminal proceedings were initiated. However, I continued my private detective investigation and contacted detectives, now from the regional police department. Focusing on pursuing the theory of possible premeditated murder, I was able to establish the following. My acquaintance with the girl, Marianna, was not a chance encounter, but a deliberate arrangement. Marianna herself turned out to be a woman of low social responsibility, and also involved in drug trafficking. Her pimps, two drug dealer brothers, sensed a relatively wealthy client in Sergei N. The merry group decided to swindle Sergei N. out of his money, and simultaneously get him hooked on drugs and drug trafficking. Realizing the danger of the situation, Sergei N. tried to escape the gang’s influence, but they effectively took him hostage and hooked him on drugs. Sergei attempted to escape and intended to turn himself in to the police. Then the gang of thugs took him out of town to the Rizhsky district. The vegetable gardens were deserted in the winter. The bandits began torturing Sergei N., and then, seeing the futility of their attempts to make him their accomplice, decided to kill him. They began cutting their victim into pieces…

The detective reported all the information he obtained through the investigation to the homicide department of the criminal police. But, as the saying goes, no body, no case. Although a missing person’s case had already been opened, thanks to the detective! And this played a key role in the subsequent solution of the murder!

Another spring arrived, and snowdrops began to appear. Bodies under the snow are also named after this spring flower. Parts of Sergei N.’s body were discovered in a water barrel at someone’s dacha. But his head was never found. DNA testing showed that the remains matched the DNA of Sergei N., who had been the subject of a criminal investigation. I believe every reader understands that without the criminal investigation, there would have been nothing to compare the victim’s remains to. When this ominous “snowdrop” was discovered, the law enforcement machinery sprang into action. Marianna and her drug-dealing pimps were detained and charged. Amazingly, a private detective even had to insist that the investigator bury Sergei N.’s remains in the family grave, not in a common burial site for unidentified bodies. The State Police, as usual, forgot to thank the private detective for his assistance in solving a serious crime, even though General Ints Ķuzis himself was aware of the situation, not to mention the detective’s valuable information. After Sergei N.’s father returned to shore from the sea, he came to me, and I offered him my condolences…

P.S. Some time later, as a lawyer, I spoke with Prosecutor Tsirule about another case, and it turned out that she had been the one prosecuting Sergei N.’s murderers and was interested in meeting for the first time a private detective who had actually helped solve a serious murder involving dismemberment. It was after this case that I made the final decision to suspend my detective work and continue practicing law. However, I still have my detective certificate, and I renew it periodically, just in case, as I have the right to do.

Source: Path of Private Detective by Michael Chernousov

www.mc-advokats.lv 

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Tumen Transit. The beginning of Baltic Security

Part 10: Detective from Riga, Latvia. Tumen Transit. Memoirs of Michael Chernousov.

I gained my first experience as a private detective while still in uniform. After defending my dissertation at the Academy of Management of the USSR Ministry of Internal Affairs, at the insistent request of General Anri Karlovich Kavalieris, I returned to Riga and taught operational investigative work at our Higher Police School. Private detective work was becoming fashionable, and I developed a Statute on Detectives, which was discussed in our department, approved, and sent to the Latvian Ministry of Internal Affairs. Later, as Chairman of the Latvian Detective Federation, I was invited to the Saeima several times to discuss the Law on Detective Activity. Therefore, the theoretical foundations of private detective work were familiar and close to me, and later, I gained practical experience.

The Soviet Union was rapidly approaching collapse, and wild capitalism was sweeping all spheres of life. There wasn’t enough money to live on, and I, a young police major and the only candidate of science in operational search and rescue operations in the entire Baltic region, was forced to work part-time as a security guard at a police cooperative, which was very stressful.

Then, on the recommendation of my childhood friend, Alexei T., a reputable employer appeared—a former instructor of the Central Committee of the Latvian Komsomol, Valery Pavlovich M. (V.P.M.), who had set up an office and a small production facility on Valmieras Street. Valery Pavlovich’s business was booming, and he invited me to set up a security service at his company. I recruited police cadets and several fellow officers, and while guarding V.P.M.’s office, we also earned some extra money on other assignments: we provided security for the “look-alike,” “Miss Beauty,” and “Miss Bust” contests hosted by Vladimir I., and maintained order at the Riga Hotel casino.

One day, Valery Pavlovich asked me to urgently go to Tyumen, as the company’s manager and my friend Alexey T. had run into serious trouble there. Alexey and another freight forwarder, Valdis, had been taken hostage by local bandits, who stole their money and documents, while two new GAZ-66 military vehicles purchased by V.P.M. were sitting at the train station, undelivered, with fines still pending.

Alexey reported over the phone that the bandits were demanding a ransom, and he had been sent to the post office to collect the money order. Otherwise, the forwarder Valdis wouldn’t be released, and the owner would never see the escorted vehicles or their documents again…

Due to budget constraints, I was tasked with rescuing the victims and the valuable cargo alone. Taking sick leave from my primary job at the police academy, I flew to Tyumen on the next available flight. I had no ransom money, no weapons (I had no plane), and no escort team.

We agreed over the phone with Alexey that he would inform the gang about the incoming money transfer, and we would meet at the main post office and decide what to do. We both understood the difficulty of the task, but those were the days… Alexey still hoped that I would bring the money, the bandits would calm down, and his partner, the documents, and the cargo would be returned.

Arriving in Tyumen and meeting near the post office at the appointed time, I immediately noticed that Alexey was being followed. It’s understandable; bandits aren’t fools, after all, and they had to keep an eye on the client! It’s hard to lose your tail in an unfamiliar place, but using alleys, backyards, and other tricks, we managed it and “disappeared” into the big city. After thoroughly checking in, we didn’t stay in hotels, but rented a private room for the night in some slum.

Alexey, a friend of mine from OKOD and whom I trusted completely, told me the details of what happened. He and Valdis, on behalf of V.P.M., had come to Tyumen to register and ship the purchased vehicles to Riga. These military GAZ trucks were fully equipped for travel and life in the most challenging conditions, even in the impenetrable taiga: a powerful engine, high cross-country ability, an independent diesel generator, a miniature kitchen, equipped sleeping areas… I wouldn’t refuse such an all-terrain vehicle even now!

The freight forwarders stopped for a couple of nights at the Yuzhny auto campsite. They had documents and money to ship the cargo to Riga by rail. The trucks were loaded onto flatcars, and all that remained was to complete minor formalities and pay the railway duties. On the eve of the final day, our guys decided to have dinner at the campsite bar. They had a few drinks and immediately came under pressure from the local “protection” group, which operated the campsite. What followed was typical: they were beaten, their money and documents were confiscated, one hostage was locked in the basement, the other was released under surveillance to the post office with a ransom demand, and the cargo sat at the freight station under mercilessly accumulating interest.

Under these circumstances, negotiating with the bandits with only an empty wallet and promises to pay—but later—was pointless. So, early in the morning, Alexey and I, taking precautions, went to the local criminal investigation department, where we filed a report of the crime and explained the situation. 

I showed my police academy teacher’s ID and introduced myself to the head of the Criminal Investigation Department. We chatted like colleagues, but I didn’t see much enthusiasm in his eyes. They accepted our application and promised to review it, but they didn’t do anything else, as everyone was busy with their own affairs. Our hopes for a prompt response from a rescue team were dashed, and we still had to rescue the cargo, the penalty interest rates for which were growing with each passing hour!

So I had to resort to a little tweaking. On police letterhead, in the name of the head, I typed a letter on the department’s typewriter to the head of the Tyumen Railway Administration, asking for all penalties related to the platform downtime to be waived, stating their platform numbers. And to dispatch the cargo to Riga immediately, without delays at junctions. Getting the secretary to stamp it, present a chocolate bar, and smile sweetly wasn’t difficult at all. The Tyumen region’s size and freight volume far exceeded the entire Baltic region, so it’s not hard to imagine that the railway administration there was much larger than our Ministry of Railways. When I arrived at the railway administration, the director was holding a large meeting, and appointments were scheduled down to the minute. This meant that trying to get an appointment with him could take a very long time.

And then, as the saying goes, “every cloud has a silver lining!”

While I was in the reception area, the secretary unexpectedly received a call from the head of the criminal investigation department, whom I already knew. He said he was looking for a detective from Riga with a police ID with my name on it. If I showed up, he asked me to report to the police station immediately. It’s surprising today, but back then, there really weren’t any cell phones, and you had to call a landline! I just happened to be at the phone, and we immediately spoke! It turned out that the Tyumen detectives had woken up because on that very day, at the Yuzhny campsite, a gangland shootout had broken out, resulting in several dead bodies… But our freight forwarder, Valdis, was alive, well, and at large! I told the head of the criminal investigation department that I was very busy at the railway, but as soon as I was free, I’d report to the police station.

After that, decisively, without permission, I went to the head of the Tyumen regional railway department and, in the presence of a large number of his subordinates, handed him the letter I’d prepared on behalf of the police chief. I didn’t insist, but demanded, that our cargo be immediately dispatched to Riga, citing that people were already being shot in Tyumen due to the delay in sending these vehicles.

My request was unexpectedly quickly granted, the letter was initialed, and the cargo was cleared for dispatch all the way to Riga. Forwarders Valdis and Alexey went to escort the cargo in comfortable conditions… And I rushed to the airport to fly to Riga, since it wasn’t the bandits who were looking for me anymore, but the local Criminal Investigation Department, secretly suspecting me of involvement in the liquidation of local criminals.

The next morning, I call the head of the Criminal Investigation Department in Tyumen from my employer’s office in Riga. “Where are you? We’ve lost you, we need to meet you, debrief you! And what was your team doing at that campsite anyway? We had two dead bodies and several wounded in the team that took the hostages!” he asks. “And who were these victims, good people or bad?” I ask. “Yes, local bandits, real thugs! And the case is shady, you know where, and there are no leads!” replies the colleague on the line. “Oh well, one shady case more, one less. You’ll solve it someday.” But I wasn’t even at the crime scene and wasn’t involved in the showdown. And I won’t be able to meet you anytime soon; I’m already in Riga, sorry!”…

It was the turbulent summer of 1991. Soon after the events described, both train platforms with their cargo safely arrived in Riga, and a month later, the Union ceased to exist.

Thus began my private detective work, which would last for over 20 years.

Source: https://mc-advokats.lv/

 

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Medical Insurance Fraud Investigation

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Case study # 2. Medical insurance fraud Investigation

The key point is universal -  to defraud the insurance company and hide back home.

Medical Insurance fraud investigation in Latvia | Lithuania | Estonia | Hungary | Greece |Worldwide

“From our experience in international Insurance Fraud investigations, the key point is universal –  to defraud the insurance company and settle back home for a while” – Baltic Security.

Baltic Security investigates full scope of insurance fraud in Latvia | Lithuania | Estonia. Medical fraud | Vehicle Accident fraud | Workplace injury fraud | Car theft fraud | Arson fraud are among the most popular insurance fraud investigations we have encountered.

“Not every accident is a fraud, but every insurance fraud is an accident”  – Baltic Security. 

Example of Medical Insurance Fraud Investigation in Latvia: Client – Investigative Company from the UK asked Baltic Security for assistance in unclear insurance investigation in Latvia and Lithuania. The objective was to trace the location and provide surveillance of the individual that was suspected to perpetrate a multimillion $ medical insurance fraud in the UK.  Our detectives conducted a background check with source inquiries. Shortly, the individual was allocated and assistance our fraud investigative team with physical surveillance was ordered.

Soon after Baltic Security surveillance unit arrived, a male with similar but not easily recognizable appearance was detected exiting the apartment building. Male was happily walking around and playing with the pet. Notwithstanding the insurance claim of total immobility, the subject’s behavior was different from the anticipation.  Further pieces of evidence of normal physical activity were detected and submitted to the client for further realization.

This case shortly describes a common usage of private investigators in Latvia | Lithuania | Estonia | UK | USA and around the world. Often, the cases are more complex and require in-depth information gathering with the visits to multiple locations. In such complex cases, it is important to follow the correct algorithm in order not to jeopardize the whole operation.

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ACFE European Fraud Conference 2012 Summary

European Fraud conference with the representatives from 34 countries including Latvia, Belgium, Holland, Nigeria, India, Poland, Latvia, USA, UK, Ukraine, Russia etc. were sharing experience on fraud prevention, detection, and investigations worldwide.

Some Highlights of Vladislav Chernousov presentation:

Detection and investigation of Corporate Fraud in Eastern Europe has to be taken considering the cultural specifications and local legislation. Each instance of potential signs of fraud has to be investigated separately and no universal approach on fraud elimination shall be applied.

Brief history of the development of Eastern European and Baltic countries within the last 20 years. Some most common examples of corporate fraud and due diligence investigations in Latvia | Lithuania | Estonia  daughter companies or branches of the foreign companies. The dilemma: whether  to conduct complex fraud investigation which may lead to unnecessary public attention.

Ostrich approach – often executives and directors completely unaware of the fraud that is taking place at their companies. When first signs of fraud are detected it is crucial to apply appropriate measures to reduce or eliminate fraudulent activity and investigate if necessary. The effective investigation shall be conducted by the professionals.

Wanna Be Wife scam has been actively developing since EU expansion since year 2004. Well organized groups often closely connected to money launderers and criminals, supply models to clubs. Ladies pretend to fall in love with the wealthy individuals. First meeting with the client typical happened at the night clubs or Bars. Typically, models were acting naturally as B-girls. The final objective of the scam closely supervised by the superiors, to get as much money as possible from wealthy foreigners. When the client starts to get stubborn or has no more money to pay, the supervisors apply delicate removal of the wanna be wive from the project, by a third person that may play role either as a boyfriend, brother or another relative. 

European Fraud Do and don’ts of the fraud prevention policies in the effective corporate environment.  Case study of the actual fraud investigation that was taking place at the industrial facility in Estonia.

Abstract

Along the technical progress and economic development, the scale of fraudulent activity in the corporate environment is increasing. In order to effectively minimize losses and harm from such activity and prevention techniques shall be utilized and carefully applied where necessary. Highlights of fraud investigations in Latvia | Lithuania |Estonia  i.e. Baltic region as a vital intersection point between East and West are used.

Fraud prevention policies that are used by the large companies often touch very sensitive issues such as employee trust. From one side it is important that employees feel that their employer rely on them and their actions. Complaints due to the personal dislikes and other undeveloped actions may destroy the environment of trust. However, from another perspective, everyone including employees and board members must understand that fraud is being considered seriously and violators will be punished.
Detecting and investigating signs of fraudulent activity shall never be overestimated or taken too superficially. For instance, one has always remember about the impact on the corporate reputation and internal environment of putting the wrong person under investigation.

Abstract of the presentation that Mr. Vladislav Chernousov, CEO of Baltic Security was selected to present at 2012 ACFE European Fraud Conference.

Tags:  fraud investigations | due diligence | B-girls

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