Controversial Romanian businessman Dan Adamescu is being investigated over suspicions that he siphoned RON800m (€180m) from Astra Asigurari, according to Intellinews, the Eastern European newswire.
Adamescu headed the insurer, which he acquired when it was privatised, until it was declared insolvent last year.
Prosecutors from Romania’s National Anticorruption Directorate (DNA) say that Adamescu misused the firm’s money and prevented Romania’s financial markets regulator, the ASF, from carrying out its supervisory duties.
Adamescu was given a four and half year prison sentence in February 2015 after he was found guilty of bribing judges managing the insolvency of firms in his group. Adamescu’s appeal against the court’s decision is still outstanding.
Astra, Romania’s insurance market leader until two years ago, was placed under special administration in February 2014 when its solvency and capital adequacy dropped below the required levels.
A Bucharest court endorsed the bankruptcy in November and the insurer is currently under the management of the insurance market guarantee fund, which services customers’ claims.
Adamescu is one of the country’s most high profile businessmen with interests spanning real estate and media as well as insurance.
Astra’s bankruptcy was the biggest in Romania’s emerging insurance sector. The company had 1.8m clients last year, with 2.5m outstanding insurance policies.
In 2014 it posted gross written premiums of €173m and had a 9.5% market share.