Greek shipowner detained on fraud charges

Greek shipowner Victor Restis was detained on Friday on criminal charges of embezzlement and money-laundering in a decision that sent shockwaves through the Athens shipping community.

Mr Restis, who is accused of embezzling €5.8m from a private Greek bank controlled by his family, was considered a flight risk "due to his profession which gives him the means to leave the country and live abroad", said Rea Katsyveli, the investigating magistrate hearing the case. No date was set for his trial.

The decision came as Yannis Stournaras, the finance minister, called for a crackdown on alleged tax evaders previously considered "untouchable" by the tax authorities because of their wealth and political connections.

"There are no longer any untouchables . . . I will provide the political cover and my personal support to anyone who wants to pursue tax evasion," Mr Stournaras said in a 10-page memorandum to finance ministry staff.

Mr Restis, who controls Greece's sixth-biggest commercial fleet with more than 90 vessels, is the first prominent shipowner to be detained on financial charges even though more than 600 businesspeople have been jailed in the past 18 months for tax evasion, according to Mr Stournaras.

The funds were allegedly embezzled from First Business Bank, a small Athens lender in which the Restis family held a 64 per cent stake and were illegally transferred abroad through a series of offshore companies, according to separate investigations by the central bank and an anti-money laundering prosecutor.

Mr Restis, FBB's former chairman, denied wrongdoing. He said a former business associate had mishandled a €5.8m loan from the bank, according to a person with knowledge of the case.

Shortly before Friday's hearing Mr Restis paid €6.6m to the state Loans and Deposits Fund, covering the full amount plus interest "to demonstrate good faith", said Petros Mahas, his lawyer.

Under a 60-year-old article in Greece's criminal code, repayment of embezzled funds entitles the defendant to lenient treatment by judicial authorities.

"The judge's decision not to grant bail in such a case was unprecedented to the best of my knowledge," Mr Mahas said.

FBB was placed in liquidation in May after the Restis family decided against participating in a mandatory capital increase required as part of Greece's international bailout. Its healthy assets were acquired by National Bank of Greece, the country's second-largest commercial lender.

About €500m of bad loans in the bank's €1.2bn portfolio are being investigated for other possible cases of embezzlement and money-laundering, according to investigators.

The Restis family controls Enterprises Shipping and Trading, an Athens-based operator of bulk carriers and tankers with about 7,000 employees worldwide. Mr Restis is a major shareholder in Seanergy Maritime, a bulk carrier operation listed on New York's Nasdaq market.

The family has minority stakes in Protothema, a popular Greek tabloid newspaper, and Teletypos, a company that owns the biggest private Greek television station as well as real estate holdings in suburban Athens. Mr Restis had been preparing to divest his media interests following his exit from FBB and focus on international shipping, said a person familiar with the group's activities.

© The Financial Times Limited 2013. All rights reserved.
FT and Financial Times are trademarks of the Financial Times Ltd.
Not to be redistributed, copied or modified in any way.
Euro2day.gr is solely responsible for providing this translation and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation