After the evidentiary proceedings in the cases "Caspia 1" and "Caspia 2" were completed, the closing arguments began today in the trial of the defendant Duško Knežević at the Higher Court in Podgorica. The trial is being presided over by Amir Đokaj, as a single judge.
In the cases "Caspian 1" and "Caspian 2", the defendants are Duško Knežević and Đorđe M. Đurđić, who concluded a plea agreement.
The indictment of the Special State Prosecutor's Office (SDT) charges Knežević with committing the criminal offenses of abuse of position in business through incitement and money laundering, all in connection with the sale of the "Princes" hotel in Bar.
In 2019, Đorđe Đurđić entered into a plea agreement and was sentenced to six months by a final verdict of the Higher Court in Podgorica.
The case concerns the illegal sale of the "Princes" hotel in Bar to the company "Kaspia Properties", for which Knežević issued a bank guarantee, although he was not authorized to do so.
Special Prosecutor Miroslav Turković, in his closing argument, proposed that the court impose a single prison sentence on the defendant Knežević for two criminal offenses: "abuse of position in business operations committed through incitement" and "money laundering". He proposed that the court impose a fine as an additional punishment, and that the detention be extended after the first-instance verdict is pronounced.
"The evidence provides a clear basis for the defendant Duško Knežević to have committed criminal acts. At the main hearing, he gave a defense in which he denied the allegations in the indictment. He said that this was the result of a political showdown with Milo Đukanović, and that he brought numerous investments to Montenegro. According to the prosecution, this defense was given in order to avoid responsibility. Material and personal evidence point to the conclusion that he committed criminal acts. I would like to point to the final verdict of the Higher Court, which sentenced Đorđe Đurđić to six months in prison. He was heard as a witness in these proceedings, stating that he was instigated by Duško Knežević," said Turković.
He stated that there were no legal requirements for issuing a bank guarantee.
"Kaspia Properties sued Atlas Bank, and by the judgment of the Commercial Court of Montenegro, Atas Bank was obliged to pay 12.500.000 million euros with interest starting from 24. 7. 2015. A total of 15.205.504,60 million euros was paid. This evidence renders meaningless the defense that it was a draft of issued bank guarantees. The bank guarantee was issued on 14. 01. 2014, and the seller of the 'Princes' hotel was Duško Knežević, although he was not the owner. The decisive facts have been established to a degree of certainty. Duško Knežević was not the owner and shareholder and had no authority to sell the hotel, nor to receive money from the purchase price. He received 8.000.000 euros in cash, which Knežević brought to Montenegro from Baku, while he received money on two other occasions in the account of the fifth and on March 11, 2014, in the amount of two million and 2.400.000 million euros. It has been proven that he personally received the money in cash," said Turković in his closing remarks.
He believes that the criminal offense of money laundering has also been proven, because the money comes from criminal activity, and that he acted with direct intent.
Lawyer Vladan Đuranović, attorney for the damaged "Atlas Bank" in bankruptcy, said that he fully accepts the closing argument of the special prosecutor.
"I am joining the criminal prosecution. As the attorney for the injured party 'Atlas Bank', we are filing a claim for damages in the amount of 12 million euros. The activation of the bank guarantee contributed to the introduction of bankruptcy and that is indisputable. A total of 15 million euros was withdrawn from the account of 'Atlas Bank'. Duško Knežević withdrew around 12 million euros and it is indisputable that these funds were never returned to the bank," emphasized lawyer Đuranović.
One of Knežević's three defense attorneys, attorney Dušan Radosavljević, focused in his closing argument on the fact that this was a draft bank guarantee that had no legal effect.
He proposed that the court acquit Duško Knežević of the charges, applying the principle of "the benefit of doubt is greater for the accused." His second proposal was that the criminal prosecution was absolutely time-barred. Regardless of the verdict, he proposed that the court lift his detention.
"This was originally a civil process that subsequently became a criminal one. If it had not been for the Commercial Court's verdict, this criminal one would not have happened either. The first verdict from 2016 rejected the lawsuit against 'Atlas Bank', and in a repeated trial in 2017, a verdict was issued approving the lawsuit. So, a civil dispute turned into a criminal process. His property was destroyed and seized. A contract was concluded to sell the 'Princes' hotel, and it is indisputable that Knežević was not the owner. However, it is indisputable that he was the majority owner of the 'Atlas Group' with legal capacity. It is indisputable that the buyer from Azerbaijan did not fulfill all contractual obligations. This is a draft bank guarantee, which was not approved and did not have a legal character," said Radosavljević.
The trial is scheduled to continue on February 24, when attorney Andrijana Razić and defendant Duško Knežević will present their final arguments in assessing the evidence.
The indictment alleges that on May 20, 2015, Knežević intentionally persuaded Đurđić, the CEO of "Atlas Banka" AD Podgorica, to sign a guarantee and certify with an official seal a guarantee for "Kaspia Properties Holdings Limited" from Dubai, for 12,5 million euros. It is alleged that Knežević is the principal, and that "Kaspia Properties" is the beneficiary, and that it guarantees that "Atlas Banka" will pay this company a maximum of this amount of 12,5 million euros, for the purchase of the "Princes" hotel.
The appellate court ruled that "Atlas banka", as the guarantor for the money that Knežević took, is obliged to pay the full amount plus default interest.
"The court found that Duško Knežević received the amount of 12,5 million euros under the purchase agreement dated January 14, 2014, of which eight million euros pursuant to the signed receipt of money received and the customs declaration dated January 14, 2014, as well as a transfer from the account of two million euros on March 5, 2014, for the purpose of paying for the shares of the "Princes" hotel, and an amount of about two and a half million on March 11 for the purpose of paying the second installment for the purchase of the shares of the "Princes" hotel," the verdict stated.
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