Fake investment firm allegedly used in sting targeting former minister

Former minister Giorgos Lakkotrypis and Charalambos Charalambous – the president’s former chief of staff – may have been lured by individuals posing as prospective investors, media reports suggested on Tuesday.

Both men appear to be secretly filmed in the controversial video that circulated last week, where they seem to be speaking with persons interested in making donations to the presidential palace so that their supposed investments get fast-tracked.

But despite the alleged entrapment, legal circles also stressed that these interactions should have been reported to the anti-corruption authority.

By not doing so, lobbying rules appear to have been violated.

Citing sources, Phileleftheros said law enforcement authorities now have a clearer picture as to who approached Lakkotrypis and Charalambous.

The daily said its information comes from the statements given to police by the two men.

According to the newspaper, an investment entity operating under the name Stratix Wealth has been identified as the vehicle used in a ‘sting operation’ targeting Lakkotrypis and people close to President Nikos Christodoulides.

​The entity was reportedly used by individuals posing as managers of an investment fund to entrap Lakkotrypis, Charalambous and Cyfield CEO George Chrysochos into conversations that were later edited to suggest corruption and influence peddling within the presidential palace.

Lakkotrypis had reportedly entered into an agreement with the firm to provide expert energy consultancy in relation to a purported €150 million investment in the Cypriot energy sector.

​An investigation by Phileleftheros found that Stratix Wealth has no verifiable legal existence under that exact name. Meanwhile a company named Stratix is headquartered in Hilversum, the Netherlands, but it has been confirmed to have no connection to the group that approached the former minister.

The paper said that Lakkotrypis held three meetings – in London and Amsterdam – with representatives of the purported firm.

In return for his consultancy services, he was paid €5,000 a month for three months.

Lakkotrypis is said to have provided police investigators with details, such as the plane tickets for his travels for these meetings, the hotels where he stayed, the restaurants where he met with the individuals, and the payments to his bank account.

The former minister has also reportedly told investigators he had initially been approached by a man by the name of Markus Baumgartner. The latter put him in touch with a man going by the name of Florin Georghiou – posing as a representative of the Stratix Wealth.

From audio analysis of the video, Lakkotrypis’ interlocutors appear to be speaking in an eastern European accent.

As for Charalambous, in the video he appears to be on a conference call.

He tells the other person: “Decide what you want to do exactly…and then you can come to the president and you can offer…I’m telling you off the record now…you can come and say ‘Okay we want to do this business and we’ll have this amount of money to go for CSR [Corporate Social Responsibility] purposes’.”

Lobbying rules explicitly state that when an individual comes into contact with an official for a matter concerning a public matter – such as an investment – they need to report the interaction.

But as Phileleftheros points out, neither Stratix Wealth nor the person named as Florin Georghiou nor Lakkotrypis reported their interactions.

Moreover, none are listed on the lobbying register posted on the website of the anti-corruption authority.