The banks have accused that the Greek businessman had provided false data to finance the country’s biggest private equity deal, which cost them millions of dollars, as reported by the Financial Times.
In 2008, US based Carlyle Group had acquired Neochimiki, a chemicals distributor controlled by Lavrentiadis, after receiving capital finance at a tune of up to €750m from the aforesaid banks.
Lavrentiadis is also been investigated pertaining to many cases such as criminal fraud, embezzlement and money-laundering, in which he was involved directly or indirectly.
Neochimiki failed to fulfill earnings targets as economic conditions deteriorated in Greece and southeast European markets, consequently Carlyle charged Lavrentiadis for providing inaccurate data and demand that Lavrentiadis should buy back his 20% stake in the company.
The seven banks also sued Neochimiki’s managers and the accountant responsible for signing off on the company’s balance sheet.
