Greek Intellectual Property Agency’s assets frozen after embezzling charges

ATHENS – Assets of the Hellenic Society for the Protection of Intellectual Property have been frozen after its board was charged with embezzling, forming a criminal gang, breach of trust, tax evasion and money-laundering.

Greek first-instance court prosecutors made the seizure order up to the sum of 10 million euros ($11.64 million) after reports of financial irregularities and mismanagement and not paying royalties and fines it collected to the lawful recipients and paying its CEO 52,000 euros ($60,546) a month while the government was slashing workers salaries in other sectors.

The Athens News Agency said the order also covers securities for a Eurobank loan of 3.5 million euros ($4.08) the agency wasn’t paying and with no reports it was being chased while banks are going after small debtors in the wake of a crushing economic crisis that has seen many not able to pay their obligations because of big pay cuts, tax hikes, slashed pensions and worker firings.

There were also no reports whether AEPI was still operating given that its board is facing a raft of serious felony charges or whether the defendants are being prosecuted. The court order falls an earlier edict allowing the seizure of personal bank accounts and safety deposit boxes of AEPI’s board members.

AEPI has been the target of an investigation since September 2016, when it refused to submit to a tax audit.

The criminal charges were added after a report by chartered accountants Ernst & Young revealed the loss of 50 million euros ($58.22 million) from its books in the space of four years.

Protothema earlier this year revealed the scandal about AEPI which represents 14,540 Greek artists and around 2.2 million foreign artists through representation contracts. The company was supposed to withhold 10% of the rights and the fines it was collecting which were supposed to give to cultural purposes and charity, which never happened.