An Israeli property developer faces up to seven years in prison after admitting to fraudulent transactions involving Greek Cypriot land in occupied northern Cyprus worth nearly €40 million, in what prosecutors described as the first case of its kind.
Shimon Mistriel Aykut, 74, who also holds Portuguese and Turkish citizenship, pleaded guilty on Tuesday to 40 charges of “fraudulent transactions in immovable property belonging to another” at Nicosia’s Criminal Court. Prosecutors dropped 202 additional charges as part of the plea agreement.
The court will announce Aykut’s sentence on 24 October at 11:00. He has been held in custody since June 2024, time that will be credited towards his sentence.
The charges relate to illegal developments on 40 plots totalling 385,969 square metres valued at €38.85 million by the Department of Lands and Surveys. The properties formed part of five building complexes in occupied Ayios Amvrosios (Caesar Cliff), Trikomo (Caesar Resort), Gastria (Caesar Beach and Caesar Blue) and Akanthou (Caesar Breeze and Caesar Bay).
Prosecution outlines displacement and appropriation
Senior state counsel Andreas Aristidis outlined the agreed facts, linking the case directly to Turkey’s 1974 invasion and its aftermath.
“Turkey’s military invasion of Cyprus in July 1974 and the continuing illegal occupation of Cypriot territory were accompanied by the violent displacement of more than 160,000 Greek Cypriots and led to the looting and appropriation of their properties,” Aristidis told the court.
Aristidis said Aykut, who operated in the occupied areas in land development, construction and property sales, participated in the Afik group. Through an entity “registered” with the so-called authorities of the pseudo-state, Aykut carried out activities between 2014 and 2024 relating to the construction and sale of properties built on land belonging to displaced Greek Cypriots.
Defence pleads for leniency based on age and remorse
Defence lawyer Maria Neofytou focused her mitigation plea on Aykut’s age, clean criminal record, medical condition, degree of involvement and remorse.
She said her client’s clean record carries greater weight given his age of 74 years, demonstrating his previous life and character. Neofytou described her client’s actions as “a mistaken assessment of the facts”, adding that a heavy sentence would deprive him of the remainder of his life.
“I pray he does not die inside the Central Prisons,” Neofytou told the court, saying Aykut wants to spend time with his children and grandchildren.
The lawyer spoke of “remorse and a sincere apology by Mr Aykut to the court”. She submitted a letter from a fellow inmate describing how Aykut had helped him whilst detained.
Neofytou said Aykut’s mistake “was that he wanted to help his son” – a reference to wanted fugitive Yaakov (Jack) Aykut Afik. She said his son asked for help and because the 74-year-old had a Turkish Cypriot identity card, he made the necessary arrangements. She added that her client was not the mastermind and became a shareholder and director of the company to help his son.
The lawyer said that whilst Republic authorities investigated the developments from 2020 onwards, Aykut never learned of anything illegal.
Aykut displayed visible emotion during his lawyer’s plea, removing his glasses discreetly and covering his eyes. He was visibly tearful as proceedings were translated for him from English into Turkish.
Court seeks clarification on defendant’s knowledge
Presiding judge Christiana Parpotta asked Neofytou to clarify her references to her client’s involvement – specifically whether Aykut had full knowledge of the illegality and to what extent he participated in the development against his will. Senior state counsel Aristidis also intervened on the point.
Neofytou clarified: “Whatever he did, he did at the instigation of his son.”
The lawyer noted that whilst “appropriation” is used widely, no such offence exists in the criminal code as a legal term. Both sides agreed no welfare office report was needed for Aykut.
The prosecution previously presented video of an Aykut interview on Turkish pro-government channel NTV about the illegal developments. The defence had earlier challenged Aykut’s direct participation in the investments.
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