POLICE are looking into possible racketeering being carried out at the expense of licensed distributors of beverages, the force’s spokesman confirmed yesterday.
Police spokesman Andreas Angelides said they are investigating two such cases after receiving complaints from distributors of alcoholic beverages and soft drinks.
The story was first reported by daily Alithia. The paper said a number of established distributors were getting SMS messages warning them to stop supplying this or that establishment otherwise their own premises would be firebombed – or worse.
It’s understood that for the time being detectives have scant leads to go on; tracing the alleged senders of the messages will prove difficult given that pre-paid calling cards were used.
The businessmen on the receiving end of the threats are said to suspect individuals with mob ties who have muscled into the market, either by forcing entertainment establishments to buy from them only or by threatening their former suppliers, or both.
Previously, the distribution of beverages in Cyprus was controlled, but the trade has now been opened up, allowing anyone to set up shop.
Police believe this type of extortion is widespread but is under-reported; victims are typically reluctant to go to the authorities for fear of retaliation.
In addition to straight-out bullying tactics, criminals have developed more subtle ways of placing establishments under their thumb. By branching into private security firms, they can then provide their ‘services’ under a guise of legitimacy.
It’s understood that, despite the passage of legislation last year aimed at cracking down on private security firms, this activity continues unabated.
Loan-sharking is also on the rise, police say. Last Sunday a 32-year-old man was arrested for allegedly charging a 10 per cent ‘vig’, or fee on a loan, per month. The debtor, who filed the complaint, says he borrowed around €12,000 last year and has so far paid back €44,500.
The 67-year-old debtor, a lawyer by profession, told police his lender threatened to harm him because he, unable to meet the payments, was forced to write cheques that later bounced.
The 32-year-old alleged lender, who denies any wrongdoing, has been remanded in custody after appearing in court.
And earlier last week police detained a 68-year-old man from Larnaca after two persons accused him of loan-sharking. Again, the alleged rate charged was 10 per cent.
The police spokesman urged the public to be extra careful when entering into loan deals with non-banking institutions, adding that the maximum lending rate is 6.77 per cent. Anything above that is unlawful.
