Detention extended. Janusz Palikot is still behind bars

At the same time, as in previous rulings regarding this investigation, the court applied the so-called “conditional arrest”. This means that if the former politician and businessman pays PLN 2 million in bail by January 31, 2024, he will be able to leave custody.

Janusz Palikot still in custody. The court decided

The prosecutor submitted the application to extend the detention on December 18, 2023. During the detention hearing, the court found that “there is both a general premise, i.e. the likelihood of committing the alleged acts, as well as the fear of fraud, the threat of a high penalty and the risk of going into hiding” – this is how the content of the court’s decision was summarized by prosecutor Katarzyna Calów-Jaszewska from the press team of the National Prosecutor’s Office, quoted among others by “Rzeczpospolita”.

She also recalled that the court maintained the original amount of the property guarantee at PLN 2 million, and the deadline for paying the bail was postponed to January 31 due to the difficulties of arranging such an amount during the Christmas period.

Earlier, on December 18, the District Court in Wrocław – considering a complaint against the extension of detention until January 1, 2024 – indicated the possibility of Palikot’s release after paying PLN 2 million. The payment deadline was set for December 26, which the former MP’s defense attorney, Andrzej Malicki, described as very difficult to meet. “Palikot’s family and friends have not yet managed to collect such a large amount,” said attorney Malicki, quoted by the Polish Press Agency.

Detention of Janusz Palikot

Janusz Palikot (with consent to publish his image and data) was detained on October 3, 2024 by officers of the Central Anticorruption Bureau (CBA) in Lublin and Biłgoraj. At the same time, two of his associates were also detained – Przemysław B. and Zbigniew B. On the same day, all three were transported to the Department of the National Prosecutor’s Office in Wrocław, where they were charged.

Palikot heard eight of them in total: seven related to fraud and one related to misappropriation of property. The charges concern the years 2019-2023 and – according to prosecutor Katarzyna Calów-Jaszewska – are related to “causing unfavorable disposal of the property of several thousand people for the amount of nearly PLN 70 million as part of the activities of companies belonging to the suspects.”

In the investigators’ opinion, the key irregularities are related to the issue of series B shares by companies from the Capital Group controlled by Palikot and his associates, as well as to the loan campaigns organized and promoted by them.

The prosecutor’s office claims that the offering documents presented false information as to the actual purpose of the funds paid by investors. “The invested money was not intended for the purposes indicated in the issue documents, but was spent to cover the previous liabilities of companies from the capital group that were in a bad financial situation,” reported prosecutor Calów-Jaszewska, quoted by Onet.pl.

Additionally, Palikot and Przemysław B. were accused of misappropriating alcoholic beverages with a total value exceeding PLN 5 million. The prosecutor’s office explained that after the termination of the cooperation agreement with one of the companies, goods remained in the suspects’ warehouses, which were then sold to other entities – instead of returning them to the original owner.

The proceedings conducted by the Lower Silesian Branch Department of the National Prosecutor’s Office also covered both of Palikot’s associates – Przemysław B. and Zbigniew B. Like him, they were charged with fraud, and in the case of Przemysław B., the prosecutor also charged with misappropriation of property.

However, libertarian measures were applied to them – those that did not require isolation from society. Taking into account previous court resolutions, Janusz Palikot, according to law enforcement authorities, posed a greater risk of fraud and obstruction of the investigation, and there was also a fear of hiding or covering up his tracks.

At this stage of the investigation, Palikot – as emphasized by the second of his defenders, attorney Jacek Dubois, in statements quoted, among others: via the TVN24.pl portal – he pleads not guilty to the charges and provided extensive explanations. The prosecutor’s office does not disclose their content, explaining it in the interest of the proceedings. However, it is known that the highest penalty that the alleged offenses may result in is 20 years’ imprisonment.

The case of Janusz Palikot arouses great public interest. Not only because it concerns a well-known public figure and alleged losses of almost PLN 70 million incurred by a group of over five thousand investors, but also because of the image of the Polish private business financing market.

Numerous comments by experts quoted in “Rzeczpospolita” and on websites (including Business Insider Polska) point out that investments in shares or bonds of companies not listed on the main stock exchange require caution and analysis of detailed information about the company.

Both market observers and representatives of law enforcement agencies emphasize that the Palikot case may be a turning point in looking at crowdfunding issues, issuers’ information policy and supervision of companies that apply for capital from a wide range of individual investors.

Such a large financial scandal – related to a person who until recently was active in the public space – may result in stricter control practices conducted by the Polish Financial Supervision Authority (KNF) or other public institutions.