Cyprus Mail
Cyprus

New remand for 13 in Ayia Fyla co-op scam

Limassol court

Thirteen suspects held in connection with a loan scam at Ayia Fyla co-operative bank worth almost €12mln, will remain in custody for an additional six days.

The suspects, including two business people, two of their former employees, co-op members and three former members of its committee, property valuers, were arrested in connection with the case.

The case concerns the approval of 11 loans worth €11.9 million between 2007 and 2009.

Loans were granted without the necessary collateral, property was overvalued, there were unjustified deposits to accounts, and gifts were used to get people to sign as guarantors.

Committee members allegedly acted on behalf of the two businessmen, approving loans without the required collateral, while valuers overvalued property to secure loans bigger than the value of the mortgage.

People with financial or psychological problems, often on allowances, were paid or offered other things in return for their signature as guarantors.

The documents were later changed, making them the primary debtors without their knowledge.

Money from the loans ended up in the businessmen’s personal and company accounts. The co-op officials who mediated were rewarded financially.

 

 



Related posts

EU citizens stymied by restrictions on crossing points

Agnieszka Rakoczy

Coronavirus: Nine new cases announced on Sunday

Katy Turner

Two remanded for eight days after over 2.5kg cannabis found

Katy Turner

Homes under threat as fire rages in Prastio

Katy Turner

Volunteer Doctors Cyprus depart for Beirut

Anastasiades pledges €5 million aid for Lebanon

Katy Turner

3 comments

Comments are closed.