Investigation: How Odesa's KUB Legalised Fake Apartments Near Varna

Bulgarian law enforcement agencies and journalists have detailed the algorithm of actions used by the Odesa corporation KUB to sell residential real estate in a forest zone near Varna. This scheme explains why hundreds of buyers were left with paper promises instead of actual apartments, and why the first accused officials have appeared in the criminal case.

Double prices and cash payments

In official contracts, the cost per square metre was listed at approximately 700 euros, with funds processed through banking systems. However, the real price reached 1,800 euros. Buyers paid the difference in cash, which was transported across the border by couriers.

According to the publication VIP Bulgarian Properties, some units were sold for as much as 3,000 euros per metre. In this case, clients held only "reservation contracts" rather than notarised deeds of ownership.

The complex's infrastructure operated illegally: water supply was provided by two illegal wells, for which residents paid in cash.

Mass legalisation three months before the raid

The key date in the registry was 9 March 2026. On that day, the company "Forest Club Varna" registered over 90 deeds of ownership in a single day. The company registry confirms that, as of today, the firm holds 129 property rights. All these objects, located in the Koru Chayir area, were formalised by constative notarial acts on that specific day. They concern apartments ranging in size from 67.8 to 72.7 sq m.

This mass legalisation took place less than three months before the police raid conducted on 26 May.

Prosecutor's investigation and first accusations

The Varna prosecutor's office explains how it was possible to formalise houses in the forest. Currently, six pre-trial proceedings are underway: one at the district prosecutor's office regarding officials under Article 282 of the Criminal Code for the period from July 2023 to May 2026, and five at the regional level.

The investigation is establishing facts of forgery of certificates of "tolerance" for buildings, allegedly issued by the chief architect of the Primorsky district, falsification of declarations regarding the existence of structures prior to 31 March 2001, as well as illegal logging, well drilling, and documentary crimes. In July 2024 alone, 41 trees were illegally felled in the forest.

The first accused was 70-year-old former chief architect of the Primorsky district, Valentin Koychev. According to Mediapool, in May and July 2023, he issued certificates stating that 20 buildings on three plots allegedly existed prior to 2001. He faces up to five years of imprisonment, and the court chose a preventive measure in the form of a non-departure undertaking.

Accusations were also brought against surveyor Stanislav Radev. Former Minister Ivan Demerdzhiev reports on 9 proceedings and 25 detained individuals, including 5 municipal officials.

Tax aspect and court decisions

The scheme also had a tax dimension. The Bulgarian tax authority placed a freeze on 150,000 lev on "Forest Club Varna" as late as the end of 2023. In February and March 2026, freezes amounting to over 100,000 euros were placed on the companies "KUB Developments" and "KUB Restaurants".

The Varna Court of Appeal ordered "Forest Club" to return approximately 35,000 euros to a buyer after the contract was terminated on 29 March 2024. Additionally, the labour inspection fined the firms in 2025 for employing workers from Ukraine and the Russian Federation.

Consequences for buyers and a new wave of problems

The main victims of this scheme turned out to be the buyers. On 28 May, the prosecutor's office prohibited notaries from certifying transactions regarding 93 objects on four plots built in 2023.

Varna Mayor Blagimir Kotsiev issues between 10 and 12 demolition orders weekly. In total, approximately 100 objects are subject to demolition. Nevzorov is challenging these decisions in court. On 15 October, the Varna Administrative Court concluded the hearing of the "Forest Club Varna" lawsuit regarding the forced disconnection of electricity and water to five houses and is set to issue a ruling.

A new problem has emerged next to the complex. Former Mayor Ivan Portnykh stated the existence of "Baba Alino 2" within 100 metres of the main complex. Minister Abrovsky reported on 9 fenced plots, four of which are classified as state forest in forest plans, while they are already listed as private in the cadastre.