Property fraud suspects charged as investigators probe scheme worth more than €5m

Nine people have been arrested and four charged in connection with an alleged property fraud scheme in Sofia.

As first reported by BNT, it has now been confirmed that two of those detained are Georgi Yanev, known as “Jamesa”, and former notary Boris Yankov, whose professional rights had previously been revoked.

The Ministry of Interior and prosecutors said today, May 15, they are investigating fraud cases worth at least €5m. The victims were predominantly elderly people, who are believed to have been targeted by the group.

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During searches of a home and premises used as a business office by former notary Boris Yankov, whose licence had been revoked, investigators discovered a striking number of original title deeds relating to high-value properties in the capital.

Lyubomir Nikolov, Director of the Sofia Directorate of Internal Affairs: “Some of the documents discovered — the original title deeds found at the home of the former Sofia notary — were stolen or unlawfully appropriated deeds originating from the former Notary Office. This means these are extremely dangerous documents for him to possess, because there are no corresponding originals available for verification in the relevant Property Registration Office.”

An old typewriter was also discovered at Yankov’s home — the kind used to prepare title deeds before the era of computers. Investigators suspect it may have been used to alter ownership details on property documents, making it easier to facilitate fraudulent transactions.

Lyubomir Nikolov, Director of the Sofia Directorate of Internal Affairs: “We came across a number of highly interesting findings, including genuine identity cards, numerous original title deeds linked to planned property fraud schemes, as well as documents relating to the purchase and sale of real estate and the subsequent transfer of nine additional properties to an individual who was due to receive just €1,000 for the entire deal being arranged.”

Nikolay Nikolaev, prosecutor at the Sofia District Prosecutor’s Office: “We are dealing with an individual in what could be described as a more vulnerable social situation. Ultimately, the transaction was formally completed before a notary, but the person did not receive the money that had been promised. Furthermore, a pledge to grant the victim lifelong rights of use over the property in the Lyulin district was not honoured.”

• Nine detained in crackdown on alleged property fraud network in Sofia

Evidence gathered so far suggests that the total proceeds from the alleged property fraud schemes exceed €5m.

Most of the frauds are believed to have followed a pattern involving false testimony before a notary, claiming that a particular individual had occupied a property for more than 10 years, allowing a declaratory title deed to be issued.

The property would then be sold to a so-called “good faith” buyer, who would subsequently transfer it to a commercial company. At that stage, the property would re-enter the open market appearing legally clean and free from irregularities.

Nikolay Nikolaev, prosecutor at the Sofia District Prosecutor’s Office: “The funds were transferred into the account of a commercial company which we have now established had no active business operations. In other words, it appears to have been used specifically for the purposes of such transactions.”

At this stage, investigators have evidence of fraudulent property transactions allegedly carried out by the group between the beginning of this year and April. Authorities believe that the material seized during the investigation could lead to the uncovering of dozens more cases involving high-value properties.

Ivan Demerdzhiev, Minister of the Interior: “I see this operation as one with further stages to come. I believe it will develop and expand. This is an extremely serious criminal network that must be identified and dismantled all the way to its highest levels.”

photos by BTA

At present, four people have been formally charged and prosecutors will ask the court to keep them in permanent custody pending trial.

However, further charges may yet be brought against additional individuals allegedly involved in the scheme, while investigators are also examining evidence that could support allegations of organised criminal activity.