THE WIFE of Lycourgos Kyprianou, the former chairman and CEO of bankrupt Nasdaq-listed AremiSoft Corporation, has asked the court to release their frozen assets so she and her family can maintain the lifestyle they are used to, which, as she listed to the court, includes spending £4,000 a month on clothing.
A Nicosia district court issued an injunction on July 21 freezing Lycourgos Kyprianou’s worldwide assets as well as those of companies and people affiliated to him.
The injunction was secured following a lawsuit filed by the Trustees of the AremiSoft Liquidating Trust on behalf of over 6,000 former investors who lost over $500 million in what US authorities described as one of the biggest stock market frauds of all time.
AremiSoft filed for bankruptcy on March 15, 2002.
It is understood the plaintiffs have traced more than $100 million in illegal trading profits in AremisSoft shares to Kyprianou and an additional $30 million, which he allegedly misappropriated from AremisSoft.
US authorities have charged Kyprianou, among other things, with securities fraud and money laundering and are treating him as a fugitive after he refused to return and face the charges.
Meanwhile, the Nicosia court will examine tomorrow an application by Lycourgos and Ermioni Kyprianou, Pavlos Meletiou, Global Consolidator Ltd and King Mazzax Lines Limited to release their frozen assets.
Lycourgos Kyprianou has asked the court to allow him to withdraw his monthly salary (£12,600) and running costs as executive manager of Global Consolidator, and any money necessary from personal bank accounts for him and his family to live and his children to continue their education in private schools and universities in Nicosia and the UK. His lawyers also request that Global be allowed to withdraw money to pay running costs and wages.
Ermioni Kyprianou, who owns King Mazzax Lines, asked the court to release over £250,000 from an account, which she says was given to her as a gift from her father. Ermioni, who gets £12,000 a month from King Mazzax Lines asked the court to annul the interim order freezing her company’s bank accounts.
In her application, she lists the monthly costs needed to maintain her family as it is used to being maintained, which amount to £20,600 each month. The costs include £3,500 a month for electricity, phone and heating bills, £1,500 travel costs, £1,100 house insurance, £1,200 for domestic help, £800 on children’s tuition fees, £1,000 personal care and £4,000 on clothing for herself, husband and three children.
Ermioni maintains that the application to release funds is wholly justified to maintain her family at a level it has been living in so far. Otherwise, Ermioni says: “My family will suffer terrible difficulties and will be unable to meet its economic needs while (King Mazzax Lines) will be forced to end its commercial activities.”
Financial director of Global Consolidator, Pavlos Meletiou, also seeks to have his monthly net salary of £5,200 released by the court so he can meet the financial needs of himself and his family.
He notes that Global employs 25 people and has a monthly running cost of £50,000.
Lycourgos Kyprianou and joint CEO Roys Poyiadjis are suspected of making well over $300 million in secret sales of Aremis stock while the company was reporting artificially inflated revenues.
Kyprianou was detained by local authorities in October 2002 on suspicion of conspiracy to defraud and exporting currency under false pretences.
He was remanded in custody for a week and was released without ever being charged.
