Friday October 31, 2014 Search
Weather | Athens
18o C
13o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Stiff sentences handed out over structured bond scandal

Protesters hold up black balloons reading ‘bonds’ and ‘funds’ during a rally in central Athens when the scandal first came to light in 2007.

Stockbrokers, finance executives, bank officials and pension fund managers are among the 13 people who were handed jail sentences of up to 25 years on Thursday for their part in the 2007 sale of 280 million euros in structured bonds that led to the funds paying around 20 million euros over the odds for the paper.

The criminal appeals court in Athens handed 25-year sentences to Theodoros Priniotakis and Giorgos Apostolidis of the Acropolis brokerage house, Haris Adamopoulos and Avraam Savidis of JP Morgan bank and Giorgos Papamarkakis of North Asset Management. Five managers of state-run pension funds were handed 20-year terms. They were Agapios Simaioforidis of TAYPED, Panagiota Karadima of TEADY, Panagiotis Karadimas of TEAYFE, Gerasimos Konidiaris of TSEYP and Constantinos Christidis of TEAOPEKA.

Nikos Bougos of HypoVereinsbank received a 15-year sentence. These 11 defendants were found guilty of a range of crimes, including fraud, breach of faith, money laundering, tax evasion and forming a criminal organization.

Two accountants, Angelos and Dimitris Liatis, were given five-year terms. They were found guilty of being accomplices to tax evasion.

In addition, the court ordered the seizure of property owned by Priniotakis up to the value of 6.5 million euros. It also imposed a fine of 11.6 million euros on Papamarkakis.

JPMorgan bought the bonds from the Greek government in February 2007 at 100 cents on the euro as part of a swap transaction. The bonds were then sold by the bank to North Asset Management, a London-based hedge fund, at a price of 92.95 cents on the euro. North Asset then sold the paper to HypoVereinsbank for 99.9 cents. The bank then sold the bonds to Athens brokerage Acropolis Axepey at 99.95 cents. The state-run pension funds bought the bond from Acropolis at a price of 100 cents on the euro.

Reports about the deal sparked protests and rocked the New Democracy government at the time, prompting the dismissal of then Labor Minister Savvas Tsitouridis. JPMorgan and North Asset later agreed to buy back the bonds from the pension funds at face value.

ekathimerini.com , Thursday May 29, 2014 (20:24)  
A year after GD members shot dead, police have no leads
No new Manolada trial, court rules
Greece poised to send reform proposals to troika
Extended summer timetable at museums, sites hailed a success
Power rates soared 60 pct in six years
During the 2008-13 Greek recession, the country endured the steepest domestic electricity rate hikes seen anywhere in the European Union, amounting to a total of 60 percent over the six year...
NBG chairman sees risks to recovery
The chairman of National Bank of Greece warned on Thursday that political, economic and geopolitical risks pose a threat to the country’s recovery. “Unfortunately we made too much noise and ...
Inside Business
BASKETBALL
Obradovic watches Greens thrash his Fenerbahce
The second homecoming of former Panathinaikos coach Zeljko Obradovic, now at Fenerbahce, was not as emotional as last year’s, but it was certainly was the night of an emphatic triumph for th...
SOCCER
Berg returns to add spice to Panathinaikos´s Cup win
The second round of games for the group stage of the Greek Cup produced plenty of interesting games and results in midweek, but it still lags the upset potential that the knock-out stages of...
Inside Sports
COMMENTARY
The judiciary’s responsibility
The reform efforts over the past few years have begun to bear fruit. Greece has improved its standing in the World Bank’s Doing Business rankings, rising 48 positions from 2010 to 61st place...
EDITORIAL
Findings raise eyebrows
An investigation into money transferred to foreign banks by civil servants since 2010, when Greece’s brutal debt crisis erupted, has come up with some striking findings. The checks, which we...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Obradovic watches Greens thrash his Fenerbahce
2. Berg returns to add spice to Panathinaikos´s Cup win
3. Power rates soared 60 pct in six years
4. NBG chairman sees risks to recovery
5. Greek consumers shift toward money saving
6. IMF could offer know-how in backup plan for Greece
more news
Today
This Week
1. Greek euro dilemma is back as minister predicts volatility
2. Students hijack university senate meeting
3. Clientelism belongs to the past, says Mitsotakis
4. European stocks tumble as banks decline after Enria’s comments
5. Civil servants to be investigated for transferring money abroad
6. Over 1,500 buildings and vehicles damaged in flash floods
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.