A final court ruling has been issued in favour of COBALT’s client, a German company, in criminal proceedings concerning alleged criminally derived property. The court concluded that the client is not the owner of the seized assets and has no provable connection to the specific cargo.
The criminal proceedings were initiated by the Tax and Customs Police Department of the State Revenue Service regarding a potential violation of European Union sanctions. This led to the seizure of the cargo and the commencement of proceedings for criminally derived property.
During the appellate stage, COBALT successfully secured the remittal of the case for a new hearing in the court of first instance, by demonstrating that the initial evidence had not been fully or correctly evaluated. Upon re-examination, the court accepted the arguments of the defence and concluded that the title to the property belonged to a different company.
In evaluating the origin of the assets and the respective legal rights, the court concluded that the property was linked to the criminal offence under investigation and was subject to confiscation. At the same time, the court established that COBALT’s client could not be considered the owner of these assets, as ownership had already passed to another foreign company at the moment of the transaction’s execution. Consequently, the risk of the client being unjustifiably identified as the owner, and the resulting legal liabilities, was averted.
The case highlights the importance of a thorough assessment of evidence, and the role of an effective defence in complex cross-border proceedings involving proceeds of crime.
COBALT represented the client throughout all court proceedings, securing a re-examination of the case and a favourable final outcome. The client was represented by Specialist Counsel Līga Fjodorova and Senior Associate Gabriela Šantare.
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