site.btaSofia City Court Orders Detention of Seven Suspects Arrested in Prosecution–Anti-Corruption Commission Operation

The Sofia City Court on Tuesday ordered remand in custody for seven individuals detained during a recent joint operation by the Sofia City Prosecution Office and the Anti-Corruption Commission. Earlier in the hearing, the prosecution requested the most severe remand measure for all defendants, while defence lawyers argued that the case should not proceed.

Judge Ivan Koev said the court found the remand requests well-founded. The defendants have been charged with a serious offence punishable by imprisonment under Article 321(3)(2) in conjunction with Article 321(2) of the Criminal Code. Evidence collected so far supports a reasonable assumption that they participated in an organized criminal group involved in coordinated fraud, misappropriation of funds and tax offences. The case materials indicate suspicions that a person falling under Article 6(1) of the Counter-Corruption Act - a category covering public office holders, is also part of the group.

According to the court, the defendants are believed to have built a financial pyramid scheme involving a network of employees who misled citizens to invest in high-return projects and to recruit further investors. Funds obtained through the scheme were circulated between a number of controlled commercial companies to create the appearance of legitimate turnover and avoid tax liabilities. Promised returns were not provided, with part of the funds allegedly misappropriated and part used in projects to maintain credibility.

Evidence suggests that defendant Plamen Kunchev played a key coordinating role in the scheme through companies “Treasure” and “Together”. The court also cited evidence of specific actions by defendants Nikolay Hitov, Biser Sivkov and Nikolay Kutsarov in support of the group’s activities. Defendant Emil Eftimov, identified as partner and manager in several companies, is believed to have facilitated financial flows to entities linked to the group.

While the court found no real risk of absconding as all defendants have known identities and addresses and cooperated during initial investigative actions, it held that there is a real risk of reoffending if they remain at liberty, given the scale, duration and coordination of the alleged criminal activity and the significant financial flows involved.

Judge Koev instructed that defendant Hitov be provided with necessary medical care due to his health condition.

Speaking to the media, lawyer Ivan Tomov, who represents defendant Nikolay Kutsarov, said the alleged organized criminal group is described in the case materials without an identified leader and includes a participant who is a Member of Parliament unknown to the prosecution. He compared the case to the proceedings involving Varna Mayor Blagomir Kotsev.

Lawyer Yuliana Mateeva, representing defendant Hitov, said there is no clarity regarding the alleged participation of any of the defendants in the group. She argued that despite the case file spanning 100 volumes, the charges rest solely on the activities of commercial companies.

Prosecutor Ahmed Kokoev told reporters he could not identify the leader of the group, adding that the investigation concerns financial flows of more than BGN 50 million over a period of about ten years.

The remand measure is subject to appeal.