Police outline developments in Laiki and BoC investigations

THE Legal Services and police investigators looking into the 2013 collapse of Cyprus’ economy met on Monday to decide on action regarding the prosecution of five former Bank of Cyprus officials for misleading investors in 2012.

During the session, which started shortly after noon, the team of investigators updated Legal Services on evidence collected so far into both Bank of Cyprus and Laiki Bank.

Currently, investigations focus on the period of time from 2006, when HSBC sold its stake in Laiki Bank, to 2013, when the lender collapsed.

According to state radio, the purpose of the meeting was to determine the way forward so that more cases can make their way to court. Initial estimates suggest that Laiki-related cases will be forwarded to court shortly after Easter.

But in addition to investigations into Laiki Bank, more cases involving the Bank of Cyprus are being initiated, including the issuing of Convertible Enhanced Capital Securities (CECS), the purchase of Greek bonds, and the purchase of Russian-based Uniastrum Bank.

Five former Bank of Cyprus officials, as well as the bank itself, have been charged with misleading investors in 2012.

The five ex officials – former board chairmen Theodoros Aristodemou and Andreas Artemis, former chief executives Andreas Eliades and Yiannis Kypri, and former deputy managing director Yiannis Pehlivanides who was in charge of Greek operations – as well as the bank itself were brought up on charges by the auditor general, as a result of police investigations into the reasons for the collapse of Cyprus’ banking sector and economy in March 2013.

The trial is set to resume on March 18, when the defendants will be called on to plead either guilty or not guilty to the charges .

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