Police: Misconduct at pawnbroker generates losses of over HUF 4 bln

Competition

The owner of the Lombard Kézizálog Zrt. admitted to misconduct, index.hu and other news portals reported yesterday afternoon. Speaking at a doorstep press conference, the Hungarian police’s spokesperson announced that the estimated loss exceeds HUF 4 bln. 

In January MNB ordered an oversight supervisor to monitor the company’s inappropriate lending and refinancing practices.

According to the Lombard’s website, Chief Executive Péter Bíró owns 99.5% of the shares of the company which was founded in 1990 and currently has 30 employees.

Currently, the company’s English website is being redirected to an Asian language site, while the Hungarian website is still available. Some online sources – likely by mistake – have linked the troubled pawnbroker to the Lombard Lízing group, which has no affiliation with Bíró and is 90% owned by VR-Leasing AG.

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