How rich Estonians fell victim to Chechens in Bulgaria - Vol 1

Äripäev that spent over six months investigating business connections of criminals and Estonian businessmen in Bulgaria. The preparation of the article was financed by the European Fund for Investigative Journalism at www.journalismfund.eu

"We certainly did it in style - we withdrew a huge amount of cash from the bank, flew to Varna with over 100,000 euros in pockets, and paid for the land," says one businessman who was lured to Bulgaria by Ozdoyev and had set up two joint ventures co-owned by people who were linked to the Chechen mafia in Varna.

“They controlled prices so well that we could not understand whether they realistically invested any money there or not. In principle, they used our money to become owners,” said another Estonian shareholder.

Three-four years ago life in Estonia was beautiful – the economy was expanding and the real estate boom promised bigger riches. Free funds were itching in Estonians’ pockets. Some of them believed the fairy tales of Gild investment bankers and invested in gold digging in Armenia. Others believed the tales of Ahmed Ozdoyev, a well-dressed Ingushian, about the town of Varna at the Black Sea and other nearby resorts.

"I know everybody there and will help you buy land cheaply," was Ozdoyev’s main message, according to investors.

Investors unconcerned about Ozdoyev’s prison record

So Estonians started to throw money in the wind. There were those who withdrew all retained profits from their small business and invested it in the Bulgarian real estate market, hoping to earn millions in profit.

Surprisingly, no-one seemed to care that Ozdoyev had recently been released from prison where he had spent several years for involvement in organized extortion when attempting to take over one food industry at the end of 1990s.

Anyone could have done a simple background check and found from the Internet a few articles published at the end of 1990s that said that Ozdeyev who was being charged at the time was the leader of the Ingushian mafia in Estonia. However, none of the businessmen said they were bothered by the criminal record of their partner. On the contrary, they hinted that this was even a benefit to go into the new market with such hardened partners since you don’t beat up your own guys.
In Varna, Ozdoyev had set up contacts with Jahia Hashiev who, according to the Bulgarian media, is the leader of the Chechen mafia in the Varna area.

The background of Hashiev is so colourful that one could turn it into a blockbuster movie. Among others, he has served years in prison for extensive VAT fraud, and is claimed to have links to the top people of the Irish Liberation Army (IRA) who have invested large amounts of money in the real estate market of Eastern Europe. In addition, his partners include people who the Bulgarian law enforcement agencies suspect of organizing prostitution, drug business, extortion and smuggling of weapons.

Hashiev who is escorted by five bodyguards was arrested again by the Bulgarian police in March 2010, has been charged of extortion and is waiting trial.

Things started to move quickly for Estonians who had followed the advice of Ozdoyev and travelled to Varna with wads of cash. Companies were set up in Bulgaria and, just in a few days, various land parcels with houses or sometimes simply fields were registered to their names.

It were the Chechens who selected land parcels and negotiated prices with sellers. In some cases they also became co-shareholders with Estonians in the companies set up in Bulgaria. According to local journalists, the new business partners of the Estonians were well-known in Bulgaria as members of a criminal gang.

Estonians paid top dollar to the Chechens

The scheme how the Chechens operating in Varna filled their pockets with cash from Estonians was simple. Depending on the amount of possible investment, they chose the lots or developments and told the sellers to write into sales contracts prices that were several times higher than actual prices.

Among others, they bought for Estonians lots near the Ignatievo village that is of suspect value and is inhabited with gypsies. They paid sellers 2 euros per square metre, although the price stated in the contract was 18 euros.

„Locals believe that they were laundering money, but it could actually have been simply a scam against Estonian partners,“ said Rositsa Penkova, a journalist in Varna who helped Äripäev with the story. It is unusual in Bulgaria to show a higher than the actual price in the contract. Those keen to evade taxes are doing the contrary, showing a smaller price.

These land transactions for Estonians were masterminded by Umalt Osmaev who was a close associate of Hashiev and who himself became a co-shareholder with the Estonian in Družba-3.

One of the land sellers told a Varna journalist later that he could not understand why they wanted to buy his land since it was impossible to build anything on it.
„They were buying the land to re-sell it at a profit,“ said the local resident who sold his property.

Business partners of Estonians are scary

Several Estonians who had been attracted to invest in the Varna area can tell similar stories. One person who wants to help Estonians who got scammed in Bulgaria and knows the local mafia well said that one in ten people who get scammed dare to speak out. The rest hope for a miracle or are simply afraid. Also he himself wished to remain anonymous.

Speaking of Ingushian criminals in Estonia, he said that their representatives may not be among the ten most influential criminals in Estonia, but they are famous for such scams.

„There are claims that the local Ingushian gang in Estonia and the Bulgarian Chechen gang are linked. This claim is being made by people who have been successful in business and those who have had problems with them. But it must be said that these people - Ingushians and Chechens - are quite arrogant,“ he added.

It should also be added that the Bulgarian investigative journalist who works in a local media company and helped us with the case said when Äripäev asked to describe Hashiev that Hashiev was too dangerous and preferred to remain anonymous.

Prominent businessmen created trust

What is the secret of Ozdoyev that he has managed to scam so many Estonians and why did he generate such trust? Those who have met him say that he is a good communicator, but also mention prominent (Estonian) businessmen who, according to Ozdeyev, were in business with him.

Data from Bulgarian registers and websites shows that the company of Ozdeyev is linked to the company of Andres Saame, founder of Hansabank, that is involved in large development in Golden Sands near Varna. Another person linked to this project is Härmo Värk, former CEO ofSampo Pank.

Äripäev sources said that Ozdoyev emphasised in all possible times his joint business with Saame and Värk.

Värk admitted to Äripäev that he had met Ozdeyev. Hearing that Ozdeyev had attracted several Estonians to Bulgaria and mentioned the names of Värk and Saame as his partners, Värk starts to laugh and says that he did not know about such advertising.

But there are also other prominent Estonians involved in the real estate business in Varna. Bankruptcy trustee Andres Hermet and notary Aivar Mesikäpp have business interest there. "I have met Ahmed Ozdoyev, but he did not take us there directly nor recommended any partners. Since he was also in Estonia, we simply discussed matters," says Mesikäpp.

In several companies where Ozdoyev is a partner, there are two Estonians who should be mentioned: Ahti Lille, former prominent tax official was convicted for accepting a bribe, and Gunnar Urb, owner of Seiklusjutte maalt ja merelt, a well-known pub in Tallinn. The latter is the brother of Pille-Triin Urb, wife of Ozdeyev who himself lives in an apartment in Kadriorg that belongs to Urb.

Gunnar Urb did not wish to answer Äripäev questions saying that they were biased. Also Pille-Triin Urb did not wish to comment his husband.

Ozdojev himself that he has not brokered any real estate proejcts to Estonians. He claims that he does not Andres Saame and Härmo Värk, although Värk says otherwise. He also denies knowing Jahia Hashiev.

Investors who Ozdoyev attracted to Bulgaria to invest in local real estate say that it was Ozdoyev who set up contacts with Hashiev. It is claimed that Ozdoyev and Hashiev are now in conflict since the money that Estonians were paying for property did not always reach Ozdojev.

Toomas Hõbemägibbnatchararipaev.ee