An Athens prosecutor brought criminal charges of breach of faith and fraud against Rovertos Spyropoulos, the former socialist PASOK party head of the Social Security Foundation (IKA). The charges were brought following a long investigation into the socialist party’s financial activities from 2004 to 2012 in an investigation that began in 2012 following the departure of former prime minister George Papandreou from the party’s helm.
Spyropoulos was responsible for the party’s finances when Papandreou was prime minister from 2009-2011. Accountants found foul play when probing into the party’s finances and submitted their files to prosecutors. Serious irregularities were found in the management of the PASOK party’s funds worth 15 million euros in cash from 2007-2009 when the socialists were in power.
Fraud concerns a loan worth 5 million euros from the Attica Bank in 2010 using the party’s future state funding as collateral. The same collateral had been used with other banks surpassing the value of future funding.