The examining magistrate in Athens issued a warrant for the arrest of Pavlos Psomiadis, former president and CEO of the closed insurance company Aspis Pronia. The businessman accused of serious crimes was arrested last night at his home in the northern Athens suburb of Halandri after a former associate of his warned the magistrate that the suspected businessman is ready to leave the country. Psomiadis had to testify today before the prosecutor at the Athens court of Evelpidon but was granted an extension till Friday.
Pavlos Psomiadis is accused of falsifying documents after he tried in the summer of 2009 to present a false bank guarantee of € 500 million issued by HSBC Bank. The document was presented to the private insurers supervising body in Greece as proof that the company Aspis Pronia avails sufficient capital and should not be closed. The fraud was uncovered in September 2009 and the liquidators closed the company.
Several months later, 65 investors that have entrusted their money to Psomiadis and another company of his – Aspis Capital – filed a lawsuit against him with accusations of fraud and attempted legalization of income from criminal acts. The case file shows that the company with registered capital of 60 thousand euros in the period 2003 - 2006 issued bonds worth 8 million euros, which it sold to investors for 55 million euros.
Charges were brought against Pavlos Psomiadis’ wife and daughter and their property was attached.
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