In 1997, the extravagant spectacle known as ‘The Pirate of Prague’ kicked off at an exuberant party held in a luxurious mansion in Aspen, Colorado. This was not an ordinary shindig with few treats by the sidelines, it was a flamboyant soiree that entailed a seven-course feast for more than 400 attendees, lavish drinks such as Cristal champagne and Château Pétrus wine, scrumptious caviar starters, and performance by Natalie Cole. Notable among the gathering were personalities such as Ivanka Trump and Goldie Hawn. Viktor Kozeny, the Czech tycoon and the mastermind of this grandeur, hosted the party, which turned out to be the foundation for one of the most shocking frauds in contemporary history.
A convincing fraudster, Kozeny managed to lure his sophisticated party attendees, many of whom were seasoned high-rollers, into investing immense sums of money in vouchers for Socar, a government-run Azerbaijani oil corporation. Cozeny had been granted Irish nationality in 1995 after he had invested approximately €1.3 million in a local software business. He declared that the Azerbaijani company was on the brink of privatisation, and his associates could grab a share in the deal.
How could they not trust the charismatic man with a radiant ginger hair and Hogan-like handshake? After all, he was a Harvard graduate and a previous member of the exclusive university-associated Spee club. To reassure further, he dictated a reference from a US Supreme Court judge. To top it all, he had once held 15% of the Prague stock exchange and was the proprietor of an island in the Bahamas.
As revealed in this podcast, the UK’s ambassador to Azerbaijan understood why accepting trust in a certain someone is unnecessary. Renowned journalist, Susan Greenberg, reporting for Reuters and the Economist echoed his thoughts on the man in question with her biting words, stating his deception was conspicuously clear. This man, Kozeny, who received investments from the likes of U.S. Senator George Mitchell, had constructed an unstable empire, only needing a signature from Haydar “Baba” Aliyev, Azerbaijan’s president, to set the financial windfall in motion. However, instead of a fruitful culmination, the entire operation collapsed, leading to distraught investors, a probe by the Federal Bureau of Investigation, and a charge of grand larceny from the attorney of Manhattan district.
Stories such as these – with elements of scandalous love affairs, Hollywood stars, glittering bribes, and even an escape from prison – send journalists into a frenzy. Joe Nocera, a business reporter with a long stint at both The New York Times and Bloomberg, along with Peter Elkin from ProPublica, a non-profit US independent newsroom, are passionate about unearthing such tales and are clearly invested in their latest venture. Elkin has an extensive history of reporting similar strories on individuals like Kozeny and has had the unique experience of accompanying him on a private jet journey to the Bahamas back in 2000.
There are no bounds to their sources, from a 101-year-old high-stakes investor to scorned ex-wives, from prosecutors to intimate friends of Kozeny from his Harvard days. At times, their spirited antics can be a bit grating, and the fancy audio bells and whistles of their podcast might feel a tad much for such a story. However, there is no denying their command on an enthralling story that they are savouring while narrating.
“With the conclusion of the eight-part series comes a request to the perpetually unfound Kozeny, still sought after by law enforcement of both the Czech Republic and the United States: “Viktor, we are keen to comprehend your perspective in its entirety, encompassing the good, the bad, and the ugly, from inception to end”. I’d willingly part with countless outdated vouchers from the Czech oil firm to have the privilege of hearing that.”