“Clubgate” scandal in the making in Romania: Prosecutors investigate luxury clubs on possible false financial reporting

The prosecutors of the Anti-Organized Crime Directorate DIICOT have started an investigation on several luxury clubs in Bucharest that are suspected of issuing false financial reports to avoid paying taxes. The DIICOT prosecutors made 40 searches in luxury clubs and restaurants in Bucharest on Thursday morning. The raided clubs and restaurants include Trattoria Il Calcio, Fratelli, Le Club, Biutiful, and Chocolat, according to judicial sources quoted by Profit.ro. The owners of these clubs, including French investor Guilbert Lassange Jean Philippe Pierre Luc, one of the owners of Fratelli and Biutiful, will be taken in for questioning. According to judicial sources, more than 15 club owners and managers are suspected of having acquired a software which allowed them to keep a double accounting for their clubs. They have been using this software since 2006. This system allowed them not to register all their revenues in the official financial results, based on which they paid taxes. The damage is estimated at over EUR 500,000, according to first estimates, but the financial controls that are ongoing may show a much higher number. After the Colectiv club fire has dealt a strong blow to clubs in Bucharest, raising awareness about numerous safety issues, especially for clubs and restaurants in the Old Town, this new scandal could further affect this market. Bucharest clubs, banks and cinemas located in buildings with high seismic risk might be shut down Number of customers in Bucharest Old Town’s clubs drops by 40% Three clubs in Bucharest suspended following controls editor@romania-insider.com (Photo source: Fratelli on Facebook)