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Kapoustin Seeks Bail in Fraud Case

Michael Kapoustin, the head of the collapsed pyramid scheme Life Choice, has requested release on bail from the city prosecutor. If granted, it would bring him a step closer to freedom. The investigation into Kapoustin began in 1995, and he was extradited to Bulgaria in 1996. After two years, the economic expertise of the case is still not complete and only two thirds of witnesses have been questioned. Kapoustin attracted investors with promises of high monthly dividends but the source and amount of his funds are unclear. Specialists believe the defrauded depositors will likely want Kapoustin freed if it means a chance to recoup some money, even if it was obtained through fraudulent means.

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64 views1 page

Kapoustin Seeks Bail in Fraud Case

Michael Kapoustin, the head of the collapsed pyramid scheme Life Choice, has requested release on bail from the city prosecutor. If granted, it would bring him a step closer to freedom. The investigation into Kapoustin began in 1995, and he was extradited to Bulgaria in 1996. After two years, the economic expertise of the case is still not complete and only two thirds of witnesses have been questioned. Kapoustin attracted investors with promises of high monthly dividends but the source and amount of his funds are unclear. Specialists believe the defrauded depositors will likely want Kapoustin freed if it means a chance to recoup some money, even if it was obtained through fraudulent means.

Uploaded by

Michael
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Happy News

KAPOSTIN A STEP AWAY FROM FREEDOM

The chief of the collapsed pyramid Life Choice Michael Kapoustin has asked for release on bail, the
city Prosecutor Hestorov announced. It is highly possible the will of the investors to overcome the
inexorability of magistrates, some informed people say.

The investigation case against Kapoustin was started in October 1995 by Sofia City Prosecutor’s
Office. The Pharaoh was arrested in Frankfurt in February 1996 after tracing down through Interpol.
He was extradited to Bulgaria eight months later.

After two years of investigation the economic expertise has not been prepared yet and only two thirds
of the 4000 witnesses have been questioned. The Pharaoh has been charged with $ 300 000 so far. He
attracted credulous depositors with the so - called ODR and ADR promising 10% monthly dividend
for deposits in lv and 5% for foreign currency deposits.

Except for the high dividend Michael who was born in Bulgaria and has a Canadian passport
bewitched his share - holders with pastor’s sermons and great plans for a medicine against AIDS, for
production of diesel oil from waste oils, raising of broilers.

The motives for release on bail are analogous to those, thanks to which the Pharaoh from Varna
Krasimira Danailova remained at freedom and her Dobrich colleague from “Yugoagent” Mirolyub
Gaich left the cell – to return at least part of the money of the deceived depositors. According to
persons close to Michael Kapoustin an expertise concerning the assets of Life Choice has not been
made. In 1995 Kapoustin boasted that he had invested in the country $ 7 million and DM 2 million. It
became clear from the complaint of one of his Georgian partners that the tax authorities had frozen
whisky and vodka for half a million dollars, which the Georgian had honestly paid to the Pharaoh.
The reason is that according to municipality “Sredetz” Life Choice owes 166 million lv VAT for the
sale of depositary receipts. Defenders counter-buff: if the activities of Kapoustin are illegal why does
the municipality levy taxes on it?

When Bulgarian National Television (BNT) demanded bank guaranties to continue broadcasting his
advertisements, they received the guaranties of the unknown “Swiss American Bank” (the island of
Antigua) that Kapoustin had a deposit of $ 3 million with them. But whether this money is real and is
it possible to transfer it to Bulgaria seems to be a question with a pessimistic answer. The depositors
hope that the combinative person Michael will succeed to get a loan from rich friends and will return
part of the amount due. But according to them no businessman will grant a loan to a prisoner who has
no “free will” and the lack of it may excuse an eventual refusal to pay off his debts.

Specialists on Pharaoh cases classify the conduct of the deceived depositors into three stages: at first
they want the fraud to be lynched, after that they want him to rot in prison and at the end they want
him free at any cost so that he could pay back something at least, if possible. Jammed by the fierce
hope of the deceived Themis most probably will release Kapoustin.
Stefan Stavrev

Translation M. Radoulova
September 7, 1999

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