The former head of the pension fund at the center of the recent bond scandal told a prosecutor yesterday that he had been misled by the stock brokerage that advised the fund on its investments, sources said.

In the first day of testimony in the case, Agapios Simeoforidis, the ex-president of the Civil Servants’ Auxiliary Pension Fund (TEADY), gave evidence to prosecutor Antonis Liogas in connection with his involvement in the pension fund’s purchase of an overpriced 280-million-euro state bond.

Simeoforidis reportedly pointed the finger of blame for the purchase at the Acropolis brokerage and its vice president, Sofoklis Priniotakis.

The fund’s former head said that he had no intention of making an investment that would damage TEADY, which was one of four pension funds to buy into the bond.

TEADY manager Panayiota Karadima told Liogas that TEADY had also bought an overpriced bond in 2006 after a recommendation by Acropolis. Simeoforidis stepped down as TEADY president in March after evidence was found suggesting that the fund had paid some 5 million euros too much for state bonds.

The issue precipitated the sacking of former labor and social security minister Savvas Tsitouridis and has threatened the popularity of the ruling conservatives.

Sofoklis Priniotakis is due to testify today.