POLICE yesterday made public the name of a Cyprus property developer under investigation for several cases of alleged fraud including selling the same property twice.

The force’s deputy spokesperson Lefki Solomontos said the company under investigation is K & M Famagusta Developers, which has had eight complaints filed against it since 2007 – seven in Famagusta and one in Larnaca.

“There were consultations with the Attorney-general today and it was judged necessary to publish the name of the company for the protection of the public,” Solomontos told reporters.

The cases mainly concern alleged forgery, obtaining money and property under false pretences and usurping property belonging to another person.

Solomontos said four of the cases are on their way to court, two are under investigation and two others will not be brought go to court on the instructions of the Attorney-general’s office.

In one of the cases, the developer allegedly sold the same flat twice and when he was asked to return the money to one of the buyers he issued him a dud cheque twice.

But the buyer could have found out early on – before he was left with a €120,000 in debt – if the Larnaca land registry office did not make a mistake and allow the submission of both sales agreements.

Chairman of the Cyprus Land and Building Developers Association (CLBDA) Lakis Tofarides said yesterday such a thing was very rare.

“I’m in the profession for 33 years and have never heard of such a mistake before,” he told the Cyprus Mail of the land registry error.

He advised buyers to submit the sales contract to the land registry for security and check for title deeds and building permits.

“It is the golden rule,” he said.

Tofarides said there were many people out there operating as developers – over 1,200 – and only 120 registered in the association.

“Anyone with a pick-up truck, a cement mixer and a trowel can become a developer,” he said. “People should not get carried away by appealing prices.”

In a statement issued earlier CLBDA condemned the company’s alleged illegal activities and said K & M Famagusta Developers was never a member of the association.

The association said the furore has once more created the wrong impression about Cyprus’ legal land developing businesses, whose aim is the protection and service of customers and the profession.

The contractors association welcomed the decision by the authorities to publish the name of the company, which was not their member.

The association said the activities of the company were known to the Contractor Registration and Oversight Council, which struck K & M Famagusta Developers off its registry 18 months ago.

Chairman of the contractors Costas Roushas said the company had disobeyed orders to stop its activities after its licence was suspended.

“When building, a valid contractor’s licence is needed,” Roushas said. The association found various building sites where the company was still active.

But even court summons servers could not locate the owner, Roushas said.

The association said they have introduced a member card for registered contractors, which is now the most reliable proof.

K & M Famagusta Developers responded yesterday with a written statement saying: “With reference to the police announcement about our company, we wish to announce there is no problem, and the company has the financial means and the ability to cover any legally justified demands from any buyer or investor in our company.”

It added: “We would also like to state that our company is probably the only one in the sector that doesn’t owe even one euro to the banks.”

LARNACA police are investigating a developer who allegedly sold a flat twice and has so far failed to return the money to one of the buyers who was left saddled with a €120,000 debt.

But it never would have happened if the Larnaca Land Registry had noticed that two sales documents had been submitted for the same property – which they did not.

Andreas (not his real name) agreed to purchase the Aradippou flat off-plan in 2007 for €131,000.

He mortgaged the flat and made regular payments to the developer as the construction progressed.

But when it was almost finished – and the developer had already pocketed €120,000, Andreas discovered that someone else also owned the flat.

“I found the guy there. He went to see if his flat was finished,” he told the Cyprus Mail.

Andreas, who did everything by the book, had been advised by a lawyer to submit the sales agreement at the Land Registry so that he could be secure.

The other buyer had already submitted his sales document.

“When we submitted it they accepted it,” Andreas said. “They should have told me there was another one already. The damage for me was done by the Land Registry because I had only paid €1,700 as down payment before I submitted the document.”

The Larnaca Land Registry said yesterday it was a mistake.

“A mistake was made and there was a double entry,” director Michalis Filis said. “The employee did not see the submission of the first sales document.”

Filis said when the issue was discovered they brought all sides together “we saw that they could not agree and we sent the case to the police.”

This was in 2009 and Andreas is still waiting for justice to take its course.

At the advice of his lawyer, Andreas in the meantime continued to pay his loan, now at €90,000, despite the bank effectively having no collateral against it.

After the discovery Andreas contacted the developer who claimed it was a mistake and he would sort things out.

Andreas told him he no longer wanted the flat and asked for his money back.

The developer issued a cheque that bounced and then a second one – claiming a mistake had been made – which also bounced.

Andreas also reported him to police for the dud cheques a year ago.

In a letter written to police through his lawyer this June, Andreas asked the police to inform him at what stage the investigation was.

“Police said they expect to bring him before justice by the end of the month,” he said.

It is understood that this is not the only case where the same developer is implicated.

Editor’s comment

The police action is in complete contrast to the lack of interest they showed in a similar case involving British property buyer Conor O’Dwyer.

In Mr O’Dwyer’s case, which involved a property developer allegedly selling his house in Frenaros twice, the Attorney General told O’Dwyer that his property developer had not committed any crime!

(Mr O’Dwyer is currently pursuing a private prosecution against the developer involved at his own expense and we hope to report on its outcome in the next few months).