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Cyprus

Eight arrested in third Ayia Fyla co-op case (Updated)

 

Eight persons were arrested on Thursday in connection with a third case involving a loan scam at the now-defunct Ayia Fyla cooperative bank.

The eight individuals have been linked to a scam where loans were granted without the required collateral.

Among others, they are suspected of conspiracy to defraud and bribery of a public official. They were expected to appear before a judge on Friday for their remand hearing.

The police investigation leading up to the arrests relates to the 2003 to 2006 period, when the cooperative granted some €5 million in loans – or €9 million with interest and other fees – without the collateral to back them.

Among the persons arrested on Thursday are the owner of a private school and former bank officials, including the secretary and the head of the loans department.

Two other similar cases involving the same cooperative have been filed with Limassol criminal court.

The first case related to the 2006 to 2009 period and dodgy loans worth €9.6 million, and the second related to the approval of 11 loans worth €11.9 million between 2007 to 2009.

Some of the individuals arrested now are also implicated in the previous two cases, police sources said.

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