Authorities are investigating a web of fraudulent property dealings in Limassol, leaving dozens of buyers in legal turmoil more than three years after the initial complaint against a liquidator’s management of company assets.
The inquiry, initiated following lawyer Sofronis Sofroniou’s April 2021 complaint, focuses on alleged frauds spanning three decades. These practices have jeopardized the property rights of numerous families, raising concerns of financial misconduct and document forgery.
According to Sofroniou’s submissions to the police and the Official Receiver, the liquidator is accused of mishandling sales, collecting nearly €1 million from two companies, and engaging in dubious transactions, including instances where he acted as both buyer and seller, with a relative serving as a witness.
Key findings to date
Evidence uncovered so far highlights several irregularities:
- Property Mortgages: Payments reportedly collected on 11 property mortgages.
- Undervalued Sales: Properties sold at suspiciously low prices without settling associated debts.
- Unpaid Loans: Payments collected for 17 properties, yet 11 loan agreements remain unsettled.
- Double Sales: Properties resold to third parties, with payments allegedly recollected.
- Forgery: Documents, including sales contracts, showing signs of tampering or falsification.
One striking case involves a cancer patient who discovered her apartment had been sold to a third party using allegedly fraudulent documents from 1998. The contract contained glaring inaccuracies, such as references to euros, which was not introduced in Cyprus until 2008.
Legal battles and ongoing investigation
Affected buyers are embroiled in legal disputes with the Cyprus Asset Management Company (KEDIPES), which oversees former Co-op bank loans. Many buyers assert they have fully paid for their properties and are fighting to secure their ownership rights.
Police sources indicate the investigation is nearing its conclusion, with a case file expected to be forwarded to the Law Office within 10 days. Sofroniou was informed of the appointment of an investigator on December 5, signalling progress in this protracted case.
The crux of the matter is that Cyprus must reform its laws, over-sight and checks and balances.
The only hope is that auditors such as Odysseas Michaelides will prevail and cut out the rot and that Cyprus’s institutions will become cleaner, more transparent and fit for purpose.
We live in hope.