The Independent Authority Against Corruption has found evidence of criminal offences against Taxan Properties shareholders, including MP and former EDEK party leader Marinos Sizopoulos, in connection with a loan settlement that resulted in a €956,900 debt write-off.
The authority’s inspection officers determined there are sufficient indications of potential criminal offences including fraud, forgery, fabrication of false documents, circulation of false documents and conspiracy to defraud.
The findings relate to data presented to a banking organisation for loan settlement, with the signature of an Iraqi investor allegedly forged.
Authority details fraudulent scheme
The inspection officers concluded that the defendant and three other company officials signed and submitted to a bank a contract for the sale of Taxan company shares dated 17 October 2017, with false consideration of €1,600,000, concealing the actual consideration of €2,025,000.
The real consideration had been recorded in an earlier contract dated 4 October 2017, signed by power of attorney by one of the company officials on behalf of all Taxan shareholders.
Based on testimony, the inspection officers found sufficient evidence indicating the foreign investor’s signature on the 17 October 2017 contract had been forged.
Loan settlement achieved through deception
The authority concluded the 17 October 2017 contract was used to mislead the bank and obtain financial benefit, including a 37% discount on the loan amount and removal from loan guarantees.
The inspection officers identified potential violations of several Criminal Code articles: fraud, forgery and fabrication of false documents, circulation of false documents, and conspiracy to defraud.
The authority stated these offences “inherently constitute acts of corruption” as they contain elements of intent, deception and self-serving purpose, caused financial damage to third parties, violated transparency and good dealing rules, and were committed for illicit financial gain.
Evidence against defendant established
The inspection officers concluded there are sufficient indications showing the defendant knew the actual sale price of Taxan shares and the existence of the 4 October 2017 contract.
A document signed by the defendant explicitly referenced the 4 October 2017 contract containing the true sale price. Two company officials confirmed the defendant had knowledge of the 4 October 2017 contract.
The authority rejected claims that the foreign investor did not meet investment scheme requirements for exceptional naturalisation, finding he met all conditions. It also rejected claims that promises were made to secure a Cyprus passport for the investor.
The authority adopted and approved the inspection officers’ report in its entirety, confirming potential corruption offences by the defendant and has submitted the findings to the Attorney General’s office.