THE INVESTIGATION OF THE CNVM, AFTER THE ROW SPARKED BY THE CASE OF THE FORMER SIBEX CEO Cristian Sima, prohibited from operating on the stock market for five years

• The CBVM has shut down "WBS România", because the company was not recording on its books the operations it conducted in the accounts it had abroad

• Inaccurate reports on the balances of the company's accounts

Cristian Sima will be restricted from operating on the local stock market for five years, after the investigation of the CNVM at WBS Romania has revealed serious irregularities in the company's activity, where the broker had served as president and CEO until April 26th, 2011.

The Romanian National Securities Commission has also withdrawn the license of WBS Româ-nia and issued sanctions similar to those filed against Sima, against the heads of WBS Romania, Anca Bunea and Dan Vătămanu.

Brânduşa Tănase, the representative of the internal audit department of WBS Româ-nia, was fined with 10,000 lei and was barred from the stock market for three years.

According to the Commission, the sanctions were implemented because WBS Romania did not record on its books bank operations conducted through the accounts it had opened with a foreign bank.

Failing to register certain operations conducted through foreign banks led to the reporting of inaccurate balances when it comes to the company's financial resources, and by default, the inaccuracy of the monthly, quarterly and annual financial statements sent by the brokerage firm to the CNVM which did not present the faithful and accurate snapshot of the company's financial situation, which is illegal, according to the CNVM.

The Commission also adds that this situation had perpetuated itself.

This means that the statements in question also resulted in misleading reportings concerning the risk adequacy of the company's capital.

According to the law, failing to record financial operations on the books represents tax evasion.

The CNVM also found that the signature specimens declared and announced as valid at the time of the audit, used by the brokerage firm in its relationship with the banks which it had accounts opened with, were different from those approved through the decision of the Board of Directors of SSIF WBS Romania.

Also, according to the Commission, a situation has been uncovered where the company did not return to one of its clients his funds, upon request.

The firm has also kept its own money in the accounts intended for keeping its clients' money, the CNVM also states.

The results of the investigation of the CNVM, which conducted an audit at WBS România, between October 11th-October 18th, confirm the information published by the BURSA newspaper in the article "Sima's scheme".

• WBS România was constantly hiding itself behind the oversight of the CNVM to claim that everything was alright, but it never mentioned that its reports were false

The results of the investigation of the CNVM are in stark contrast with the statements of the officials of WBS România, made after the BURSA newspaper wrote about alleged irregularities at WBS România and about the fact that Sima had never stopped controlling the company, even though he was the CEO of Sibex and had officially severed any relationship with the firm.

In a right-of-reply she sent to us on September 28th, Anca Bunea, the head of WBS România, wrote that the activity of SSIF WBS România SA was continuously and carefully watched by the CNVM through the numerous reports that WBS was required to submit by the consistent legislation which regulates the financial investments services: "All of the deals made in the name and on behalf of the customers of SSIF WBS România SA have been and are conducted in strict compliance with the bilateral contracts concluded by them according to the rules and regulations of the CNVM, of the stock exchanges and of other entities authorized to operate on the stock market".

The scandal involving Cristian Sima, former Sibex CEO and former shareholder of WBS Romania, broke out when he fled the country, after he lost the money of his clients, (including stars and businesspeople), exceeding the mandates granted by some of them.

In numerous letters and televised interventions, the broker claimed that he ran away because of threats he had allegedly received.

The CNVM publicly announced that WBS Holding, the offshore that Sima was operating through, registered in the British Virgin Islands, was not an entity under its supervision.

Nevertheless, it began an investigation at the headquarters of WBS România.

The Commission already had some data on file about WBS Romania from last year, when it levied fines of a total of 5,500 lei against five employees of the brokerage firm, including Anca Bunea, the director of the company, after uncovering several irregularities, including fraudulent practices, following the investigation.