The conviction of Varazdin Mayor Ivan Cehok, businessman Davor Patafta and Patafta's associate Narcisa Huljev was quashed on appeal by the Supreme Court.

The Supreme Court stated on Friday that it established that during the trial the first-instance court violated provisions of the criminal proceedings and therefore the Supreme Court ordered a retrial in this case.

In July 2018, Zagreb County Court sentenced Varazdin mayor Ivan Cehok to two years in prison after the court found him guilty of the charges of having favoured companies owned by his co-defendant, businessman Davor Patafta, and defrauding the city budget of 14 million kuna between late 2007 and mid-2011.

Patafta was sentenced to 20 months for incitement to abuse of office. Also sentenced was Narcisa Huljev, who works for Patafta. She was given a sentence of 18 months of which she will spend nine in jail. The other indictees in this case were Tomislav Kezelj and Hrvoje Vojvoda, who were acquitted, and three firms owned by Patafta. The national serious fraud office USKOK had accused them of conspiracy to commit crime, abuse of office, and incitement to abuse of office.

Cehok resigned as mayor of over the case in 2014. He was re-elected mayor in local elections held in 2017.