Viktor Kožený
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Viktor Kožený (born June 20, 1963 in Prague) is a Czech-born fugitive financier, an Irish citizen residing in the Bahamas. Efforts to bring him to justice stem from both the Czech Republic and the U.S.A. An international arrest 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".
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[edit] Youth
After attending Harvard, but never graduating, Viktor temporarily worked for Flemings - investment bank in London, and then he learned about the coupon privatization in his Czech homeland.
[edit] Czech coupon privatisation
During the so-called coupon privatisation Czech state assets were supposed to be handed over to Czech citizens through a system of coupon vouchers, which could then be used to buy shares in companies. However mutual funds were founded, most successfully the one started by Koženy, Harvard Capital and Consulting (which had no official affiliation with Harvard University).
Initially, the government (led by Václav Klaus at the time) only expected less than 30% of the public to participate in the program. It wasn't successful when it first started. It was considered too complex, too difficult and too much of a pain for the average citizen.
Then came Harvard Capital and Consulting, whose sponsorship of Czech TV's reruns of "Dallas" gave Czechs a glimpse of what wealth could be like. Soon thousands of Czechs were signing over their coupon 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. At one point, Koženy owned almost one third of the Czech economy. This program turned out to be a huge success, and while most of the individuals received their 1000% rate of return, Viktor came away with much more.
[edit] 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. Because investors had heard of his triumphs in Czechoslovakia, many high profile U.S. investors handed their money to him, over $182 million in total. This time, the deal broke through. The Azerbaijan government changed its mind on privatization, but Koženy did not return the money and instead ran to tax haven Bahamas. He allegedly defrauded clients of New York Hedge Fund company Omega Advisors Inc. He could face 25 years in prison in the U.S.
In addition to his Czech arrest warrant, Koženy faces a serious legal action by famed Manhattan district attorney Robert Morgenthau, who has filed an indictment in New York.
Koženy has lived in the Bahamas with his mother and wife since 1993. He tried a career in politics in the Czech Republic with a new party for 2004 election - Viktor Kožený - Občanská federální demokracie. It was a failure, though.
"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 09, 2005)
Since 2005, Kožený was in prison in Bahamas waiting for the court decision whether he will be handed over to the U.S. or to the Czech Republic. The current decision of the Bahamas court from June 23, 2006, is that he will be transferred to the USA.
