Evangelos Papaevangelou

Evangelos Papaevangelou went on the offensive on Friday, claiming that his company's activities in China are legal. To date the firm has sold over 150 Greek properties to Chinese investors.

A former executive of toy retailer Jumbo rejected on Friday allegations his real estate company conducted irregular property sales with Chinese investors, saying the use of its POS to process the transactions was fully in line with banking rules.

A large number of estate agencies, law firms and other go-betweens have sprung up in Greece to respond to demand from the thousands of non-European Union citizens interested in investing in the country to get a Golden Visa. In cooperation with Chinese travel agencies and local property owners, some of these businesses have been pocketing hefty commissions from unsuspecting buyers.

Greece's Supreme Court prosecutor Xeni Dimitriou on Wednesday ordered an investigation into alleged illicit payments by Chinese nationals for the acquisition of Greek properties involving a Greek entrepreneur.

Greece's biggest toy retailer Jumbo said on Wednesday that its deputy vice-chairman has resigned and that the retailer has no knowledge or involvement in alleged irregular activities of the executive in a private capacity.

Evangelos Papaevangelou is to be removed as vice chairman of Greece's biggest listed retailer Jumbo following allegations of being involved in irregular residential property transactions, reports said Wednesday.

The transactions, which were carried out by a real estate agency set up by Papaevangelou, violated China's capital controls on outbound foreign investment, reports said.