Late last year, following an anonymous tip, the head offices of Slovakia’s national lottery suddenly found themselves at the center of a major police investigation. It had been reported that the lottery operator, Tipos, was more interested in money-laundering activity than running the lottery, and 30 law enforcement officials descended on the offices to unravel the mystery. They took Tipos CEO Ján Barczi and IT chief Miloš Prelec away in handcuffs, charged with money laundering and other crimes. Those charges have now been confirmed as Barczi makes his first appearance in court.
According to Slovakian media outlet Aktuality.sk, the prosecutor’s office has charged the two with “breach of duty in the administration of foreign property and legalization of the proceeds of crime.” However, just a day after their arrest, the Specialised Criminal Court in Pezinok ruled that there had not been sufficient evidence of any crimes for them to be remanded into custody. The prosecutors balked.
The prosecutor took his arguments to a judge, who later agreed, ordering the two to remain in custody. Barczi and Prelec were shipped off to separate prisons, in an effort to avoid any attempts at collusion, to await trial. The prosecutor’s office had argued that, should they be allowed to roam the streets, they might try to influence witnesses and manipulate the case. The judge apparently agreed.
Tipos provides everything from online lotteries to sports gambling and more. The anonymous tip received by authorities reportedly came years earlier, with Barczi and Prelec allegedly having been involved in their off-the-books operations from as early as 2012. In 2018, the organization began shutting down user accounts that it said were tied to possible money-laundering activity, putting a figure of as much as $26 million having been funneled through the accounts. Barczi reportedly worked to prevent an internal investigation into the activity.
If found guilty, the maximum sentence would most likely be 15 years behind bars. This was another reason the prosecutor’s office wanted the pair kept locked up, asserting that they might try to flee the country if not incarcerated.
As far as Tipos, which is controlled by Slovakia’s Finance Ministry, is concerned, Barczi will be nothing more than a footnote in its memoirs. He has been completely stripped of any involvement with the organization, whether guilty or not. Tipos is moving forward and looking to put the drama behind it as the country looks to expand its legal online gambling market.
