Komisia za protivodeystvie na koruptsiyata i za otnemane na nezakonno pridobitoto imushtestvo, v BP & Others. (Non-conviction based recovery)

In July 2014, per Bulgaria Law, the Public Prosecutor’s office in Sofia, Bulgaria, informed the Bulgarian Commission for the confiscation of assets that BP, who was the chair of the supervisory board for a Bulgarian bank and several others had misappropriated bank assets to the tune of approximately € 105,000. The Commission for the Confiscation of Assets carried out its own independent investigations covering a period from 4th August 2014 to 4th August 2010. The investigations revealed evidence of misappropriation by BP and several members of his family through fictitious contracts under which BP received massive income. Following this investigation and Pursuant to Article 22(1)(8) of the Bulgarian Law on Confiscation, the Commission for the Confiscation of Assets decided on 14th May 2015 to bring civil proceedings before the Sofia City Court, Bulgaria with a view to confiscating the illegally acquired assets of BP, his family members and his associates. At this time, the criminal proceedings against BP and the other Defendants were still pending. Following an application by the Commission, the Sofia City Court adopted measures to conserve the assets in question. BP and several other Defendants asserted that the application for the confiscation of their assets was inadmissible as it was contrary to EU Directive 2014/42 which required that confiscation of assets be based on a final conviction. They also argued that there was no EU legislation concerning civil confiscation of assets, and that confiscation could only be based upon criminal confiscation. Finally, they argued that confiscation of their assets prior to conviction violated their right to the presumption of innocence. The Sofia City Court, having doubts as to the interpretation of Directive 2014/42, referred the matter to the CJEU.