The most extensive tax evasion network, which used “front men”—who were typically people in dire need, including even cancer patients who were approached outside hospitals, was uncovered by a major operation conducted by the DEOS team of the Independent Authority for Public Revenue (AADE), centered in Thessaloniki. Well-known businesspeople, owners of dozens of nightclubs and bars in Thessaloniki and Chalkidiki, are implicated, while three accountants and a lawyer played a central role in the operation of the scheme; they are alleged to have organized the incorporation of the companies and managed the “front” operated by the straw men. More than 4,200 tax identification numbers are involved in the case, while there are at least 1,300 “front men.” So far, 18 arrests have been made. Those arrested are expected to be brought before the prosecutor later today to face criminal charges.
Specifically, as officially announced by the Independent Authority for Public Revenue (AADE), an extensive network of straw men and “ghost” companies—which over the past three years used 4,200 tax identification numbers to accumulate debts exceeding 203 million euros—was uncovered by the AADE through its DEOS task force. The debts consist of 68 million euros in VAT and income tax owed to the AADE and 135 million euros in social security contributions owed to the EFKA.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
The investigation, in which 60 AADE auditors and 7 prosecutors participated, covers more than 700 business locations in Thessaloniki, Chalkidiki, and other regions of the country, where, in recent years, more than 2,000 businesses—with 1,300 “front men” and 700 individuals operating under false identities. In total, more than 4,200 tax identification numbers are involved in this case.
Following a months-long investigation, the auditors identified the business owners who were actually running the operations, hiding behind individuals who formally appeared as managers and sole partners of the businesses.
These are well-known nightlife entrepreneurs who own dozens of highly popular bars and nightclubs in Thessaloniki and Chalkidiki.
Recruiting patients outside hospitals
According to the investigation’s findings, the ring sought out individuals facing serious health problems, mainly outside Theagenio Hospital in Thessaloniki and “Agios Savvas” Hospital in Athens. The ring would approach them and persuade them, in exchange for a small fee, to pose as company managers. These individuals had no actual involvement in the operations of the businesses, which were run for the sole purpose of creating debts that would never be repaid.
700 addresses, 4,200 tax ID numbers
The 4,200 tax identification numbers were associated with more than 700 addresses. A common feature was that, in all cases, the managers and sole partners were individuals acting as straw men. Cross-referencing this data was key to uncovering the ring.
Accountants and a lawyer played a pivotal role
Three accountants and a lawyer played a central role in the operation of the scheme; they are alleged to have organized the incorporation of the companies and managed the “front” provided by the straw men.
The lawyer allegedly used forged powers of attorney for criminal acts so that the businesses could obtain permits from the municipality, the fire department, and health authorities.
Indicative of the lifestyle of those involved are the luxury trips some of them took to exotic destinations, posting photos of these trips on social media.
Weapons, magazines, expensive watches, and cash were found in the luxury villas of one businessman.
Among the 18 arrested are the wife of one of the businessmen and a well-known actor and model, who confessed that he was being used as a front man, for a fee of 200 to 700 euros per month.
Source: Protothema.gr
