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The Financial Misconduct: A Deep Dive into Maxim Enachi Actions

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In the world of business, transparency and integrity are the cornerstones of trust. When these principles are compromised, the ripple effects can jeopardize an entire company’s stability and reputation. This article sheds light on the unsettling revelations about Maxim’s conduct as a board member at RE24 ESP, highlighting conflicts of interest, financial mismanagement, and the troubling overlap between Kirsan Security and Maxim Enachi’s activities.

A board member of the company is the representative of the highest executive power in the company whose primary duty and legal obligation is to act in the best interests of the company and its shareholders. This includes organizing the company’s operations, overseeing financial and general management, representing the company in various capacities, and ensuring decisions taken are done in the interest of the company foremost. Board members can perform bank transactions from the company accounts, buy/sell transactions of real-estate and other company assets, hire and fire employees etc. The sole shareholder of RE24 ESP is Reinvest Holding, represented by Natalja S. As such, Maxim Enachi should have been prioritizing the interests of RE24 ESP, Reinvest Holding and Reinvest24 OU, the loan provider, when organizing operations in RE24 ESP. Performing operations that cause damage to the company by selling its assets is a misconduct, especially if such a transaction happens with the company, where Maxim himself was a shareholder in the past and the board member for over 6 years.

Financial Mismanagement and Nepotism

During the time in the company management Maxim Enachi hired his wife and the wife of his accomplice who did not perform any function in the company operations. This was done in addition to notable fuel compensations and payments for drinks and even sometimes food, the traces of which were found within the company’s accounting documents, further indicating misuse of company funds and attitude that RE24 ESP “pays everything forward”.

Questionable Subcontracting Practices

Maxim’s choice of Kirsan Building as a subcontractor was justified by him by lower prices with comparable or better quality of construction. Which sounded reasonable, until the construction budgets started to inflate. Being a board manager also in Kirsan Building, the main subcontractor, Maxim Enachi was making transactions from RE24 ESP accounts to Kirsan Building accounts. For example the amount of payments made for works in Xirivella overshot the budget by 20% and the project still remained unfinished. Similarly, the La Canada project has seen payments totaling over 500k by March 2023 with minimal progress, casting doubt on the efficiency and integrity of Maxim’s project management. The budget/offer presented by Maxim from Kirsan Building for construction works was about 230k per house. In June 2023 Maxim made a notarial document stating that La Canada project requires additional financing in amounts close to 1m. Also worth noting, that no mentions (still) in this document of the sale of the land plot in San Antonio to Kirsan Building.

Unjustified Mortgages and Exaggerated Claims

Adding to the financial discrepancies, Maxim Enachi installed mortgages on La Canada amounting to 386k for works supposedly performed by the Kirsan Building. The total claim for these works exceeds 900k, surpassing the project’s total budget and suggesting significant inflation of reported expenses. The same operation was performed with the L’Eliana land plot with a different amount of 783k. The annual report presented by Maxim states that the company has no debt on 31.12.2022 in front of Kirsan Building. This mismanagement indicates either gross incompetence or deliberate misconduct.

Greed, Conflicts of Interest, and Overspending

Maxim Enachi’s desire for personal gain is evident in his aspiration for company shares without delivering results, which underscores his actions against RE24 ESP’s interests. His conflict of interest is further exemplified by his inability to properly manage a simple land plot division (San Antonio plot was supposed to be divided into 5 residential plots), opting instead to sell it to Kirsan Building without informing the only shareholder and the lenders. Maxim knew exactly that there are several hundreds of individual investors providing financing for the San Antonio project, yet this was not a significant enough fact not to perform a ‘debt settlement’ transaction with about half of the market price value. This pattern mirrors issues seen in Moldova, suggesting a recurring theme of financial irresponsibility and self-serving actions with the same plan to initiate bankruptcy of the company and get control on the mortgaged assets.

Lack of Transparency and Accountability

Throughout his tenure, Maxim Enachi failed to provide the requested documents to Reinvest24 and its legal representatives, instead demanding payment for himself and his unpaid employees. This lack of transparency culminated in his departure, leaving the company in difficulties, with tax debts and unresolved financial obligations.

Shared Hosting and Alarming Questions

It is worth noting that Maxim’s freshly registered website and Kirsan Security website (kirsansecurity.com and maximenachi.com) are hosted on the same servers, which is raising significant concerns. Why is Maxim utilizing the same account as Kirsan Security? Or who is the actual author of the published article? This overlap hints at deeper, potentially inappropriate entanglements between Maxim Enachi’s personal interests and his professional (ir-)responsibilities at RE24 ESP.

Addressing the violations and wrongdoings, RE24 ESP initiated a legal case for protective measures against the Maxim Enachi and Kirsan Building SL in August of last year. This move was a necessary step to safeguard the company’s assets and investor’s interests. After several court hearings, the efforts of the RE24 team led to the first significant resolution.

The court ordered the arrest of Maxim's and Kirsan Building real estate properties in  Spain, marking a pivotal moment in the pursuit of accountability and justice.

The quantity and the value of those properties is not great, but it’s an important step to provide justice. Unfortunately, Kirsan Building was able to sell the San Antonio land plot in September 2023 and this court decision doesn’t include it. This legal action underscores the serious nature of the allegations and the company’s commitment to rectifying the wrongs inflicted by Maxim’s actions.

Conclusion

The revelations about Maxim’s conduct at RE24 ESP are a stark reminder of the importance of accountability and transparency in corporate governance. His actions, marked by financial mismanagement, conflicts of interest, and a blatant disregard for company and investor’s interests have caused significant damage. Our main priority is to resolve the issues in the Spanish SPV and recover the investor’s funds by taking the individuals responsible for the damages they caused through Spanish court.

P.S.

Maxim can shed a light on one question that we have in our heads and can’t find absolutely any answer to:

How did you plan to return the money to investors, who invested into the San Antonio project after giving the ownership of this land plot to Kirsan Building as a ‘debt settlement’? From other projects? Or bankruptcy was the only option?
Reinvest24 assumes no responsibility or liability for any errors or omissions in the content of this article. The information contained in this article is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness or timeliness.

6 thoughts on “The Financial Misconduct: A Deep Dive into Maxim Enachi Actions

  • Amazing scammers! I’m glad they were discovered! What’s next, when can we expect a payout of the invested money?

  • Thats crazy, the case seems quite obvious to me. Lets hope the best.
    On the other hand as an investor I’m quite surprised that he was even able to pull of shit like that, I mean these are not little things.
    Why was this not monitored more closely?
    Going forward what are your plans to mitigate such risks?

  • Reinvest should have done a more strict due diligence of the partners chosen, especially when work happens in separate countries where we have no constant supervision or monitoring.

  • Who took Maxim Enachi on board as a board member? Who “forgot” to double-check the payments from Reinvest24 to e.g. Kirsan Holdings? In Spain more or less all investments have gone wrong as well as in Moldova – a sign of Reinvest24’s lack of success in selecting the right people to manage the projects?

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