This is the second article in the Series

From Business Mogul to the Center of a Corporate Crisis
Ivica Todorić, once a symbol of entrepreneurial success, built Agrokor into a regional powerhouse, transforming it from a small flower business into Croatia’s largest private enterprise. With a vision that spanned industries like retail, food production, and agriculture, Todorić wielded immense influence. Yet, beneath the surface, Agrokor’s rapid growth masked significant financial vulnerabilities.

A Dangerous Financial Strategy
According to our investigation, Todorić’s aggressive acquisition strategy, often financed through international loans, laid the groundwork for Agrokor’s troubles. Key loans from institutions like Sberbank, Russia’s largest state-owned bank, and VTB Bank allowed Agrokor to expand its empire, but also placed the company under immense financial strain. By 2017, Agrokor’s debt had reached alarming levels, with the company struggling to maintain liquidity.

Concerns over Agrokor’s financial transparency were not new. Todorić’s management style, characterized by centralized control and opaque reporting practices, enabled the company to present a healthier financial picture than reality. This approach ultimately backfired, as creditors and regulators began to scrutinize Agrokor’s true financial condition.

A Web of Nominees and Offshore Assets
As Agrokor’s financial issues came to light, Todorić took steps to protect his wealth. Our sources indicate that he began transferring assets and using offshore entities to manage his holdings, ensuring that significant parts of his fortune remained beyond the immediate reach of Croatian authorities. One pivotal move involved Agrokor Investments B.V., a Netherlands-based entity that played a crucial role in holding stakes in Agrokor subsidiaries, allowing Todorić to control assets beyond Croatia’s jurisdiction. This entity served as a conduit for managing investments in companies like Jamnica, Ledo, and Frikom—key contributors to Agrokor’s revenue.

Meanwhile, luxury properties, such as the Kulmer Palace in Zagreb, continued to symbolize the family’s status. The palace, a historic estate nestled on the slopes of Medvednica Mountain, became Todorić’s primary residence, complete with opulent interiors and expansive grounds. Beyond Croatia, the family secured a luxury estate in Switzerland, purchased through a trust to keep its ownership hidden, offering a retreat far from the scrutiny in Zagreb.

The complexity deepened with coastal properties along Croatia’s Adriatic, where high-end villas in Istria and Dalmatia added to the Todorić family’s real estate portfolio. These properties, managed through a network of proxies and nominees, were positioned to evade direct connection to the family’s name.

Shielding Wealth Amid Crisis
According to our investigation, the strategy extended beyond real estate. Offshore trusts in jurisdictions like the British Virgin Islands (BVI) and the Cayman Islands were used to hold financial reserves and stakes in smaller ventures, creating further layers of separation between the assets and the family. This allowed Todorić to continue exerting influence over key parts of his business empire, even as Agrokor teetered on the brink of collapse.

The use of trusted associates also played a role. Figures like Zdravko Plehacek, who had been involved in Agrokor’s internal management, were reportedly enlisted to maintain control over crucial holdings during the restructuring process. These trusted allies helped ensure that the Todorić family’s interests were preserved as the walls closed in.

The Legal Battle and the International Arrest Warrant
The situation escalated in April 2017 when the Croatian government enacted Lex Agrokor, transferring control of the company from Todorić to a crisis manager. By October 2017, Croatian authorities issued an international arrest warrant for Todorić, accusing him of financial malfeasance, including embezzlement and falsifying records. Todorić fled to London, where he publicly denounced the Croatian government’s actions as politically motivated.

Despite his legal challenges, Todorić fought to challenge the measures taken against him, appealing to European institutions to review the legality of Lex Agrokor. His defense portrayed him as a victim of political targeting, even as evidence pointed to strategic asset movements and efforts to safeguard family wealth.

Securing the Family’s Interests
Throughout Agrokor’s turmoil, the Todorić family’s assets remained a subject of scrutiny. Properties and investments across Europe—ranging from the estates in Switzerland and the Croatian coast to business stakes held through Agrokor Investments B.V.—painted a picture of a well-preserved fortune. These assets were intertwined with the broader story of Agrokor’s financial decline, reflecting a deliberate effort to shield family interests while creditors and authorities sought to hold Todorić accountable.

Family Members and Their Role in Asset Control
The preservation of the family’s wealth was not the effort of Ivica Todorić alone; his family members, including his wife Vesna Todorić and their children, Ivan, Ante, and Iva, played significant roles in managing and controlling assets. Each had a stake in various Agrokor subsidiaries, with Ivan and Ante holding directorial roles in key businesses, such as Jamnica and Ledo. Vesna Todorić, although not involved in the operational aspects, was reportedly a beneficiary of trusts that held part of the family’s overseas properties. Iva, Todorić’s daughter, held shares in certain investments through offshore entities, ensuring that the family’s influence remained strong even as Agrokor’s control shifted to state-appointed managers. This familial network of control helped obscure the direct ties to assets, creating additional barriers for creditors aiming to recover the debts from Agrokor’s collapse.

Beyond Real Estate
The story of how these assets were preserved sheds light on the measures taken to shield personal fortunes amid a corporate crisis. Beyond real estate, the Todorić family’s wealth included high-value personal assets, such as a private art collection housed in Kulmer Palace, featuring works from renowned Croatian and European artists. This collection, along with a fleet of luxury vehicles and jewelry, underscored the extent of the family’s holdings. These assets remained elusive to the efforts of creditors, adding to the frustration of those seeking to recoup losses from Agrokor’s collapse.

This complex and layered management of assets, combined with the legal and political battles surrounding Lex Agrokor, underscores the challenges faced by those attempting to untangle the web of ownership and control that Ivica Todorić meticulously crafted. It also highlights the strategic measures employed by Todorić as he navigated the crisis, allowing his family to maintain a position of strength even as Agrokor’s empire crumbled.

Our thanks go to the team at https://AssetTracing.com for their assistance in preparing this investigation.

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