KAPOUSTIN BROUGHT TO TRIAL

For more than three years thousands of citizens who have deposited their money with pyramids are
waiting for someone to give them something back and punishment for the Pharaohs who enticed
them. Last week the National Investigation Service closed the files under the case against the chief of
Life Choice Int. Michael Kapoustin with the opinion to sue him. The prosecutors are definite that they
are not going to return it for more investigations and are writing intensely the indictment, which will
be submitted to the magistrates these days.

The idea for the business implanted on Bulgarian ground by Kapoustin was born about ten years ago.
The first company bearing the name of “Life Choice” appeared in the USA in 1986 and its Bulgarian
version - Life Choice Int. was registered in 1993 with share capital of 1 000 000 lv totally deposited
by the date of registration. The company attracts shareholders by its numerous projects and at the
beginning they really invest money in them (in the projects). The range of projects is large – starting
with issuing of health cards for the shareholders of the company, passing through new technologies
for production of medicines including ones against the plague of the century – AIDS; and finishing
with processing of waste oils into energy resources. But all this was more or less the window-dressing
to convince the depositors that money are invested in noble and profitable undertakings. The most
attractive proved to be the offer for the ODR through which the amounts invested become part of the
capital and the assets of the company. Kapoustin himself assured at that time that the money deposited
by the investors would be used for financing of projects developed in Bulgaria.

In fact ODR is an investment instrument bearing fixed dividend. This dividend is paid monthly or at
once after the period of time for which the deposit has been made has expired. Its usual term was one
year and the minimum amount of money deposited – 10 000 lv or its equivalent in foreign currency.
After capitalization the annual profit as they ascertain amounts to 151%.

These overwhelming figures enticed more than 10 000 credulous Bulgarians who “presented” almost
$ 17 million to the Canadian of Bulgarian origin Michael Kapoustin. It is true that the first ones who
turned in the scheme for a short time and retired on time made quite a lot of money. But most of the
“investors” burned down.

Michael Kapoustin has been under investigation since October 1995 when Sofia City Prosecutor’s
office receives warnings from deceived citizens. Like most of the Pharaohs who found security
abroad Kapoustin left Bulgaria too, but in August 1996 Interpol found him and brought him back to
Bulgaria from Frankfurt. Canadian justice has pretensions towards him but his sins in Bulgaria seem
to be more. He will be in charge of fraud of particularly large scale ref. art. 211 of the Criminal Code.
The indictment against him is more than 1000 pages. Four thousand seven hundred and thirty one
witnesses have been questioned and 350 files of materials have been gathered under this case.

Iva Nedkova

Translation M. Radoulova
September 8, 1999