Varna Municipal Boss Arrested for Racket

Six people, among them a high-ranking employee of the City Hall in Bulgaria's Black Sea city of Varna, have been arrested for racket.

The information was reported Wednesday by the Interior Ministry, while according to Darik radio, the arrested municipal employee is the Director of the Economic Development Department of the Varna City Hall, Ivaylo Kostov, 32.

Local police say Kostov had been detained in front of his home with a large amount of cash on him. His arrest is not directly related to the municipal job.

The others are identified only as B.B, 29, owner of a SPA center, G.H., 24, from the northeastern city of Shumen, and 3 people from the Danube city of Ruse - K.G. 58, I.D., 23, and one woman, D.I., 29.

The operation was carried jointly by the police in Varna, Ruse and Sofia, and the Ruse Regional Prosecutor's Office.

The probe began at the beginning of March when a Ruse businessman alerted the police about an extortion scam. In mid-February, he had received a call from someone presenting himself as a Varna prosecutor, asking him to appear for questioning in a money laundering case. The so-called prosecutor threatened the man that if he fails to comply, he will be arrested and brought to Varna in handcuffs.

The businessman shared the details with some acquaintances from Ruse, who offered help in solving his legal troubles. On the next day, he gave them BGN 200 000 in exchange only to be told several days later that "thing were turning more serious" because the case had now been referred to the Commission for Confiscation of Illegally Acquired Assets.

Upon that the man begun receiving numerous calls with requests to pay another EUR 60 000.

The investigation established that the masterminds of the scam were Kostov and the SPA owner B.B. Four of the perps were detained when attempting to transfer part of the above amount. Police have raided a hotel room in Sofia, residencies in Ruse, and offices in Varna, and seized evidence of the crime.

The pre-trial proceedings are ongoing.

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