Seventh suspect arrested over fraud at IKA fund

Another person who worked at the IKA insurance fund in Kallithea, southern Athens, has been arrested on suspicion of being part of an organized effort to defraud the organization.

The 66-year-old woman, who is retired, was arrested on Saturday and charged with being part of a criminal gang, fraud, embezzlement and money laundering. She is the seventh person to be arrested in connection with the alleged scam.

Four IKA female employees and two of the women’s husbands faced an Athens prosecutor on Friday in connection with a benefit scam believed to have cost the institution as much as 20 million euros.

The suspects are accused of assigning benefits illegally to people not insured with the fund and taking a cut of that money themselves.

The bulk of the fraud was carried out at the branch of IKA in Kallithea, southern Athens, where the employees were based, and involved the use of forged documents, according to police.

A search of the house of one of the employees turned up a diaper box containing 960,000 euros in cash, officers said.

Ekathimerini.com