Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o 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)  
Education minister calls for probe into predecessors reform plan
Anti-racism bill goes back to Parliament
Athens condemns Erdogan comments about Cyprus
Government tries to lower hopes ahead of Paris talks
Tourism targets rise ever higher
The latest data have allowed the Hellenic Association of Tourism Enterprises (SETE) to raise its target for tourism arrivals and revenues this year higher still. During a meeting with main o...
Horse race betting hurdle removed for OPAP
The new tender for the concession of the right to organize and operate wagering on horse races in Greece for the next 20 years will include a number of changes in its terms, despite assuranc...
Inside Business
BASKETBALL
Greek hoopsters go top of their group in World Cup
Greece has qualified to the second round of the FIBA World Cup after going top of its group of six through a third win in as many group games in Spain. On Monday it beat Puerto Rico 90-79 in...
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
Inside Sports
ANALYSIS
EUs three big problems all linked
The outgoing president of the European Council, Herman Van Rompuy, said at the weekend that his successor, Donald Tusk, currently Polands prime minister, faces three big challenges: the sta...
COMMENTARY
A great president
I fully understand the countrys need for political stability, a necessity which makes the election of a president by the current Parliament absolutely imperative. At the same time, however,...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Greek hoopsters go top of their group in World Cup
2. Tourism targets rise ever higher
3. Horse race betting hurdle removed for OPAP
4. Revised GDP data confirm that Greek growth is near
5. Measures to reduce unemployment
6. Peachy export data despite Russian embargo
more news
Today
This Week
1. Excavation work at Amphipolis reveals section of marble mosaic floor
2. A great president
3. Erdogan visits Turkish-occupied Cyprus
4. Greek economy shrinks at slowest pace since late 2008
5. Dont feed the zombies
6. Greek officials meet to fine tune strategy for Paris talks with troika
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.