Russian citizens have become victims of a fraud scheme with luxury apartments in Bulgaria’s SPA resort Sandanski.

The news was reported by Darik radio Friday. The Russians are said to all be wealthy people, some of whom are known to have large businesses in Moscow, and one is a close friend of the Russian Ambassador to Sofia, Yuriy Isakov.

Two years ago the Russians paid EUR 50 000 each to purchase off plan apartments in the building of the new Mall Sandanski only to find out their apartments have been already mortgaged with the United Bulgarian Bank branch in the town.

One of the best known construction investors in Sandanski, Ivan Kovachev, is reportedly behind the scheme. During the sale Kovachev declared he would pay off the mortgages, but never actually did it. The Russian citizens are counting on Isakov’s help to get their money back.

Kovachev mortgaged 11 apartments and other parts of the building (a night club, stores etc) and failed to make payments on the loan. The Bank listed the building for public sale for BGN 3.8 M.

Private law enforcement officer, Alexander Tsankovski, has been assigned the task to sell the mortgaged properties in order to protect the financial interest of the Bank.

Rumors that Kovachev is bankrupt are floating in Sandanski. If they prove true, the Russian investors face having to pay for the apartments one more time or loose the EUR 50 000.