Thessaloniki tax fraud ring: 33-year-old businessman remanded in custody

How the network allegedly operated

The Independent Authority for Public Revenue (AADE) dismantled a tax and insurance fraud ring in Thessaloniki, which investigators say caused damage above 206 million euros to the state and social insurance funds. According to the case file, the 33-year-old businessman signed 36 lease declarations as tenant or guarantor for nine premises, then moved their operations to 28 fictitious legal entities through 88 sublease declarations. Those companies, which reportedly accumulated more than 12 million euros in debts, were formally run by nominee managers who were unknown to staff and property owners. When a company's arrears to the tax office and insurance fund grew, it was put into liquidation and replaced by a new entity at the same address, while the businessman kept control of the properties. AADE says wages and fund payments were handled in cash, delivered in envelopes through regional operating managers.

Court appearances on 10 and 11 November

Seven defendants were heard on Tuesday, 10 November, when a 34-year-old accountant was remanded in custody and six others were released with conditions. On Wednesday, 11 November, the 33-year-old businessman was remanded in custody after his own statement, while two other defendants were freed. The accountant, who denied the charges, asked to be released and for proceedings to be postponed because of health problems, saying he had taken over the office to protect the jobs of about 20 employees.

On 11 November, a 39-year-old man described in the file as responsible for hiring and cash payments was released with a 5,000 euro bail and an exit ban. He denied any role and said he had been a simple employee. A 51-year-old woman, aged 52 in one report, was released with an exit ban and a requirement to report to a police station. She told investigators she had signed what she believed was a cleaning employment contract, and later found herself listed as manager of seven companies with debts of 1.2 million euros and a partner in five others.

The scale of the losses

AADE's investigation puts the total damage at 206.2 million euros, of which about 138 million euros concerns taxes and 68 million euros insurance contributions, according to in.gr. The same outlet describes the wider case as involving 917 phantom companies, while the case file reportedly covers more than 1,200 people. Authorities have arrested 16 people in total so far. The 33-year-old's own network, by contrast, is built around 28 virtual entities and nine stores in Thessaloniki and Chalkidiki.

Taxes138

Insurance contributions68

Taxes

138 million euros

Insurance contributions

68 million euros

Data from the article text

Lawyer and accountant still to be heard

The 48-year-old lawyer, whom investigators describe as having a leading role, asked for and received an extension to testify on Thursday, 12 November. The six remaining defendants, including the lawyer, are due to be heard that day. The 34-year-old accountant, who is hospitalised at Papageorgiou hospital in Thessaloniki, was due to testify the previous Tuesday but could not because of his transfer to hospital. One report said the investigating judge would travel to the hospital to take his statement, while later reports say he is now expected to be brought to court instead.

Two brothers still sought

Authorities are looking for two brothers described as prominent Thessaloniki businessmen who reportedly fled abroad before the arrests. Reports describe them as holding 25 companies with combined debts of 3.24 million euros, and leasing seven food and night-venue properties through a real estate company before subletting them to firms run by nominee managers. When debts grew, a company was closed and another opened at the same address with the same staff under a new name and a new nominee. Investigators are also trying to identify an insider who allegedly warned the suspects about forthcoming arrests, and authorities say arrest warrants for the two brothers cannot be ruled out.