Creditors of bankrupt savings and loan association receive misleading letter

The creditors of the bankrupt Estonian Development Savings and Loan Association (EAHLÜ) received a letter from an anonymous sender, informing them of an upcoming general meeting and a proposed compromise in the bankruptcy proceedings. However, neither claim is true and the bankruptcy trustee, Martin Krupp, suspects that the message was sent with malicious intent.
In September 2022, Harju County Court declared the Estonian Development Savings and Loan Association (EAHLÜ) bankrupt, and the first creditors' meeting was held in October of the same year. EAHLÜ had nearly a thousand depositors and around 750 creditors filed claims in the bankruptcy proceedings, amounting to a total of €15.5 million. A criminal investigation related to the savings and loan association is currently underway.
"As the trustee, I've filed a civil claim for approximately €17.5 million, which was removed from the bankruptcy estate," bankruptcy trustee Martin Krupp told ERR.
The court imposed a business ban on EAHLÜ's former chairman, Maksim Sorokin, in September of last year, which will remain in effect until the end of the bankruptcy proceedings.
At the end of last month, however, a number of creditors received an anonymous email from a Gmail address, written in both Estonian and Russian, informing them that a reasonable solution had been reached in the EAHLÜ proceedings after two years of litigation.
"Bankruptcy trustee Martin Krupp confirmed during a meeting on December 19, 2024, that he is not fundamentally opposed to a compromise. He also agreed to convene a general meeting of creditors to discuss the proposed settlement," the email stated, encouraging recipients to contact Krupp for more information.
The message further claimed that the meeting could take place as early as the second half of January this year, but if it failed, legal disputes and the bankruptcy process could drag on for years. According to the email, the proposed agreement would involve transferring assets seized by police and state authorities during the more than three-year proceedings to the bankruptcy trustee, who would then distribute them among all creditors.
The letter was signed in some versions by attorney Aivar Pihlak of Legalia law firm and in others by his colleague Henrik Kirsimäe.
Unfortunately, the information in the letter is false. A general meeting can only be convened by Krupp as the bankruptcy trustee and he confirmed that he had not done so. According to Krupp, the letter was sent during a time when many people, including himself, were on vacation.
"Creditors, many of whom are elderly, are now very confused, thinking a meeting is being held without their knowledge. The aim seems to be to undermine the trustee," Krupp said, referring to the letter's call for creditors to contact him directly.
No meeting called by the trustee
Krupp assured creditors that he had not called any meeting and saw no need to do so in the near future. He also emphasized that no settlement proposal had been submitted by the debtor in the EAHLÜ bankruptcy proceedings. Moreover, under bankruptcy law, such a proposal would no longer be possible, as settlements can only be proposed before the court approves the list of creditors. Harju County Court confirmed that list by court order in July 2023.
Krupp also drew the creditors' attention to the email address [email protected], from which they had received the message. He clarified that this address is not used by the bankruptcy trustee or any other party involved in the proceedings. Krupp suspected that the address was likely created by Maksim Sorokin or individuals acting on his instructions to mislead creditors.
"If any proposals for actions related to EAHLÜ's bankruptcy proceedings are made via this email address, it should be assumed that the aim is likely to free Maksim Sorokin from criminal and civil liability for causing EAHLÜ's insolvency and the resulting harm to creditors," Krupp wrote to the creditors.
The bankruptcy trustee also noted that the Estonian Development Savings and Loan Association's website, where his updates about the bankruptcy process — including details on the misleading letter — were posted, had recently been mysteriously taken down. However, he had managed to restore the information on the site.
"A very strange situation," Krupp said.
The Legalia law firm attorneys, Aivar Pihlak and Henrik Kirsimäe, whose names appeared at the bottom of the letters sent from the anonymous address, do indeed represent Sorokin in legal matters. However, they denied any involvement with the letters in question.
"The claims regarding these letters are false," Pihlak stated.
Although ERR sought further comment from the attorneys on Krupp's claim that the letters might be intended to release Sorokin from criminal and civil liability, Pihlak said they did not find it necessary to comment further on the matter.
As of now, Maksim Sorokin has not responded to ERR's request for comment.
A while yet before the EAHLÜ case reaches court
The case file for the criminal investigation involving the Estonian Development Savings and Loan Association (EAHLÜ) reached the Prosecutor's Office in December of last year.
Senior State Prosecutor Alar Lehesmets explained that the collected materials would first be reviewed by the prosecution before being made available to the defense, which would then have the right to submit applications. After that, the prosecution will decide on the type of proceedings and refer the criminal case to court.
"Given the volume of collected materials, these processes and stages will take time. The case will not reach court in the coming months, but work is ongoing toward that goal," Lehesmets said.
In the fall of 2022, Eesti Ekspress reported that, while banks were offering depositors near-zero interest rates, the Estonian Development Savings and Loan Association was promising returns of 10 percent or more.
According to the bankruptcy trustee's report, the association may have operated as a pyramid scheme, where interest payments to depositors were made using funds from new deposits.
The outlet also reported that Sorokin took loans from the association for his companies at a lower interest rate than what the association was paying to depositors. Many of the loans issued by the association were unsecured, making it unlikely that the funds would be recovered.
One of the individuals who invested money in EAHLÜ was former Estonian Foreign Minister and current Member of the European Parliament Urmas Paet.
The Estonian Development Savings and Loan Association was established in 2014, with its office located in the Tornimäe 7 high-rise in Tallinn.
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Editor: Marcus Turovski