A scheme to launder money and drain VAT was discovered by employees of the Veliko Turnovo economic police directorate, the Regional police directorate announced.

The perpetrator was discovered as a result of tips-off, Bulgarian news agency BTA said.

By using figureheads and nine companies, the perpetrator performed a number of banking operations aimed at concealing fictitious deals. Through the fictitious deals, a total of 3 million leva in VAT was drained over a two-year period.

All the documents on the discovered crimes have been sent to the Veliko Turnovo district prosecutors' office and an investigation has started.

According to data from the Regional police directorate's annual analysis, 892 economic crimes had been registered in 2007 in the Veliko Turnovo region, while 316 cases were solved, 63 more than in 2006, BTA said. The damages caused by the crimes had decreased from 51.7 million leva to 30.3 million leva.