Gustainis said in an interview to ELTA that Stepukonis, who joined BaltCap in 2010 or 2011, was talented and introverted, very analytical and precise, while his deals were great.
According to the managing partner, it was noticed during a quarterly review in 2023 that millions might have been embezzled from the fund as transactions were noticed that should not have been carried out. An internal probe soon revealed more improper actions and transfers, thus a large audit was launched, investors and law enforcement were contacted.
He says BaltCap has suffered major but not crushing reputational damage.
Gustainis does not believe that Stepukonis, 36, is currently fighting in Ukraine against Russia as a volunteer, as claimed by some.
Meanwhile, the Bank of Lithuania stated Wednesday that Estonian authorities were responsible for overseeing BaltCap Infrastructure Fund as the company managing the fund is registered in Estonia.
Vaidas Cibas, director of financial services and markets supervision at the Bank of Lithuania, says Lithuania’s central bank and the Financial Crime Investigation Service (FNTT) carry out prevention of money laundering. However, the Bank of Lithuania does not investigate financial crime but just supervises how separate financial institutions ensure control of money flows.
He stated that the Bank of Lithuania had never checked or verified Stepukonis’ accounts.
As reported earlier, BaltCap equity fund terminated its contract with Stepukonis in November 2023 after the fund’s financial directors discovered a misconduct and contacted the Lithuanian authorities. It is thought that Stepukonis might have embezzled and gambled away money managed by the fund.
BaltCap lodged a EUR 16.6 million lawsuit against Stepukonis and gambling company Olympic Casino Group Baltija, and its shareholder in Estonia OB Holding 1.
The pre-trial investigation established that Stepukonis is suspected of embezzlement of at least EUR 27 million.
Some pension funds in Lithuania and Estonia had invested in the BaltCap Infrastructure Fund.