London property mogul charged with alleged £61m fraud

Thursday 4th March 2010

Mayfair based Greek tycoon Achilleas Kallakis, one of the major dealmakers in the realm of London property, has appeared alongside his colleague Alexander Williams in City of London Magistrates Court, charged with conning Allied Irish Bank and Bank of Scotland out of £61m.

It is claimed that Mr Kallakis falsified rent charges and overstated lease terms to clients, companies to which he is said to be linked, in order to defraud AIB.

Upon discovering the alleged fraud, AIB seized these properties and sold them on, booking a £56m writedown. He is also charged with stinging Bank of Scotland for £5m, after losing a loan that was granted to him to convert a former ferry into a luxury yacht.

Mr Kallakis, who divides his time between Monaco and London, was ranked as the 11^th richest Greek, with a fortune of £250m. His property portfolio encompasses the Department of Health building in Vauxhall and the Home Office's Immigration and Nationality Directorate in Croydon.

He has been a client of property elites such as the Tchenguiz brothers, Sir David and Sir Frederick Barclay, owners of The Daily Telegraph and the Reuben brothers. Two years ago, Mr Kallakis notoriously claimed to be developing the world’s most expensive penthouse in St James’s Square.

The property tycoon and his colleague are charged with 13 counts of forgery, five counts of fraud by false representation, two counts of conspiracy to defraud, two counts of counts of counterfeiting money and one count of fraudulently obtaining a money transfer.

The case was collaboratively investigated by The Serious Fraud Office and the City of London police and Mr Kallakis has now been forced to post bail of £140,000 and make weekly reports to Chelsea police station.

The charges he faces could carry a possible 10 year prison sentence.

Along with Mr Williams, Mr Kallikas is next slotted to appear in on May 4^th at Southwark Crown Crown Court.

By Lucy Carey