Lefkoniko report leaked

The Board of Directors of Lefkoniko have decided to forward the extensive reports prepared by independent auditors and the internal auditor of the company, which were leaked to Philelfteros to the police and the Securities & Exchange Commission for further investigating.

Members of the Cooperative Credit Societies meanwhile believe that the scandal at Lefkoniko is not related to its previous high ranking officers who have now resigned, but responsibility also extends to the previous Board who are accused of negligence.

The Group was set up in 1999 with a capital of CYP 36 mln, mostly from the various Cooperatives as seed capital. Following many ill-fated and suspicious transactions, the Coops have now written off their investments, while the firm is charged for engaging in illegal market making scheme which mostly concerned the stock price manipulation of Aqua Sol Hotels and Renos Hadjioannou Farms.

According to the leaked internal auditor report, the former executives of Lefkoniko are charged for operating dubious accounts in the name of others to channel illegal trades, receive free/bonus shares from other listed or non-listed companies and for the operation of unauthorised accounts at other financial institutions.