Romanian media investigation reveals network facilitating fraudulent transfers of indebted firms
A new investigation by independent journalism platform Recorder titled “The Paradise of Tax Evaders,” published on Tuesday, February 17, revealed a network that allegedly facilitates the transfer of indebted companies to vulnerable individuals.
The scheme involves transferring heavily indebted companies to homeless people for a fee, protecting the real owners from legal liability. This phenomenon led to Romania’s state budget losing hundreds of millions of dollars last year, despite the government passing legislation to address the issue, the journalists said.
Among those who have resorted to this system are former members of parliament and well-known businessmen, Recorder found. The practice continued unchecked by the authorities for years.
In 2025, the government attempted to combat the phenomenon through legislative amendments, but tax evasion networks quickly adapted and continued to operate.
Under the new legislation, the direct sale of indebted firms is reported to the tax collection agency ANAF. However, firms like Uzina Firmelor (Firm Factory) allegedly continued to help businessmen get rid of their companies using a two-step process.
According to media investigation, first, the homeless person intended to take over the company becomes an associate in the ailing firm. In the second step, the former owner cedes control to the new associate completely, going around the reporting requirement. Sometimes, the transfer takes place a day after the new associate joins the firm’s ownership structure.
The Recorder investigation includes a hidden-camera segment with employees of Uzina Firmelor who detail the entire process step by step. They also admit that the firm places debts of tens of millions on vulnerable persons.
The owner of Uzina Firmelor, Vlad Nica, threatened to sue Recorder in response to the investigation. “Do not publish anything! I will file a criminal complaint against you and sue you!” said Nica, who boasts a lavish lifestyle on social media. Recorder made him the face of the thumbnail for the video investigation.
Also contacted by the journalists, finance minister Alexandu Nazare claimed that the new legislation was “an unprecedented breakthrough,” adding that it was not aimed at addressing every case, but a “broad range” of situations. He thanked the reporters and promised to screen the documents of indebted firms that were sold.
Even if now uncovered, the network defrauding the deficit-ridden Romanian state budget with colossal sums may not be punished by the justice system. Another Recorder investigation, “Captured Justice,” showed that judges in Romania are encouraged by their superiors to punish tax evasion with minimal penalties, if at all. If they refuse, judges are moved and swapped until cases expire.
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