Viktor Kožený

Viktor Kožený (born June 20, 1963 in Prague) is a Czech-born fugitive financier. He graduated from Harvard in 1989 with a bachelor's degree in economics [ [http://www.bloomberg.com/apps/news?pid=10000103&sid=aCwfEDkaYm7c&refer=us Bloomberg.com] ] . Viktor Kozeny is officially an Irish citizen imprisoned in the Bahamas in 2005 [http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/04/02/ccluke02.xml&lubos_motl=reference_frame Telegraph of London article] ] but released in 2007. Efforts to bring him to justice stem from both the Czech Republic and the U.S.A. An international warrant has been issued for Kožený, who in the early '90s ran one of the great scams of the post-Communist era. By the media he is often called "the pirate of Prague".

He was imprisoned after a US extradition request but that was thrown out on appeal in October 2007. However the US said they will press the case (there are further two appeals available). [ [http://www.ceskenoviny.cz/news/index_view.php?id=278327 Ceskenoviny.cz] ]

In February 2008 a court case against him and his partner Vostry has started at Prague Municipal Court. The judge said he expects the trial to last about six months. [ [http://www.ceskenoviny.cz/news/index_view.php?id=296331 Ceskenoviny.cz] ] Kozeny has remained in the Bahamas and has not been attending the trial. He asked the prosecution to publish the charges on the Internet, which the state prosecutor has refused to do. [ [http://www.ceskenoviny.cz/news/index_view.php?id=296611 Ceskenoviny.cz] ]

Czech voucher privatization

During the voucher privatization Czech state assets were supposed to be handed over to Czech citizens through a system of vouchers, which could then be used to buy shares in companies. However mutual funds were founded, most successfully the one started by Kožený, Harvard Capital and Consulting (which has no affiliation with Harvard University).

Soon thousands of Czechs were signing over their voucher books to "Harvard", who promised a 1000% rate of return on investment. Harvard Funds bought shares in a number of companies, stripped assets and transferred the money abroad to offshore tax havens like the Bahamas. This scam turned out to be a huge success for Koženy and those working with him, who allegedly stole millions of dollars from investors in his funds.

Azerbaijan scam

In 1994, Koženy wanted to conduct a similar transaction in Azerbaijan. The country was considering privatizing its state run oil company, and Koženy offered his services. US investors handed their money to him, over $400 million in total from clients such as AIG and Columbia University. The Azerbaijan government changed its mind on privatization, but Koženy did not return the money and instead ran to tax haven Bahamas. Koženy faces a serious legal action by famed Manhattan district attorney Robert Morgenthau, who has filed an indictment in New York for his bribery of Azeri officials. ["Lyford Cay resident Viktor Kozeny, who faces 17 counts of fraud-related charges in the U.S., will either have to surrender to U.S. authorities or face extradition, according to a New York City district attorney." (Bahamas News, June 9, 2005) ]

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