Greek authorities are investigating a major pyramid scheme tied to the Golden Visa program after Chinese reports revealed fraudulent real estate transactions. The scam allegedly involves inflating property prices, misleading buyers, and pocketing large commissions from transactions. Chinese investors, in particular, have been victims, often facing financial loss. The Anti-Money Laundering Authority is expanding its probe to include the origins of funds used in Golden Visa property purchases. Legal experts advise thorough due diligence to avoid such scams.
Greek authorities have launched an in-depth investigation into an alleged pyramid scheme connected to the country’s Golden Visa program. Spearheaded by Charalambos Vourliotis, the Anti-Money Laundering Authority is targeting networks involved in fraudulent real estate transactions, mainly affecting Chinese investors. The scheme allegedly involves inflating property prices, misleading buyers into overpaying, and distributing profits among intermediaries. Chinese nationals, seeking Golden Visas through property investments, have reportedly been the primary victims. Authorities are also examining the origin of funds used in these transactions, raising concerns about potential money laundering activities.
How the Scheme Operates
The scam reportedly involves real estate companies working with law firms and foreign intermediaries to lure buyers, particularly in areas such as Piraeus. The modus operandi includes convincing sellers to inflate property values, which then allows developers to list the property at inflated prices, often twice the actual value. Buyers unknowingly purchase properties at prices far above market value, while intermediaries pocket substantial commissions.
Ongoing Investigation and Broader Impact
As the investigation continues, authorities are expanding their scope to scrutinize the source of funds for property acquisitions. The Greek government has not previously conducted thorough checks on the origin of investment funds, raising concerns about the potential for money laundering. The Anti-Money Laundering Authority plans to extend its investigation to all property transactions under the Golden Visa program, which could result in further property seizures and legal actions.
Investor Caution
Legal experts urge investors to exercise caution when purchasing properties under the Golden Visa program. Alexander Varnavas, a legal expert, highlighted that scams like these are not unique to Greece and often occur in real estate markets worldwide. He recommends that buyers work with independent legal firms and perform rigorous due diligence before committing to any property transaction.
