Lawyers slam CySEC over GGB fines on “golden boys” 8 mln

Financial Mirror (Cyprus) - - FRONT PAGE -

Lawyers for for­mer ex­ec­u­tives at Bank of Cyprus and now de­funct Laiki Pop­u­lar are chal­leng­ing the Cyprus Se­cu­ri­ties and Ex­change Com­mis­sion’s harsh fines to­tal­ing about 8 mln eu­ros re­gard­ing the pur­chase of toxic Greek govern­ment bonds and mis­lead­ing in­for­ma­tion given to the pub­lic and in the rel­e­vant prospec­tuses.

The Bank of Cyprus and Laiki Pop­u­lar face ad­min­is­tra­tive fines of 1.05 mln and 950,000 eu­ros, re­spec­tively, but se­nior ex­ec­u­tives of both banks have been handed fines on board mem­bers and se­nior rang­ing from 10,000 eu­ros to 530,000 eu­ros each for for­mer BOCY CEO and chair­man, Theodoros Aris­todi­mou and An­dreas Eli­ades and ris­ing to 703,000 eu­ros each to ex-Laiki bosses An­dreas Vgenopou­los and Efthymios Bouloutas.

The law firms of Chrysses Deme­tri­ades & Co in Li­mas­sol and Chris­tos M. Traintafylides in Ni­cosia claim their clients were made scape­goats by CySEC and the al­le­ga­tions were bi­ased and lacked ob­jec­tiv­ity. They also claimed that the prospec­tuses had been pre-ap­proved by CySEC prior to the pub­lic re­lease. The lawyers said that they will re­sort to jus­tice and sue the Com­mis­sion over its al­le­ga­tions.

How­ever, CySEC chair­man Deme­tra Kalo­girou coun­tered the claims say­ing that there was no way to en­sure that all the pro­vi­sions and con­di­tions in­cluded in the prospec­tuses were re­spected by the is­suers and their di­rec­tors and board mem­bers and that it was the re­spon­si­bil­ity of an­other or­gan­i­sa­tion to in­ves­ti­gate whether the two banks kept true to their prospec­tus de­tails.

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