The Third special investigating judge in Thessaloniki, who is handling the case of the large-scale tax evasion ring uncovered by the Independent Authority for Public Revenue (AADE) and which, using front companies managed by “straw men” as a “vehicle,” appears to have caused losses of over 206 million euros to the state and social security funds.
Two accountants, aged 45 and 55, as well as a 48-year-old lawyer, are being sent to prison following their statements before the investigating judge. With these three new pretrial detentions, the total number of individuals in pretrial detention in this case now stands at six.
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In addition to the three mentioned above who were the last to make their statements, these include a 34-year-old man, alleged to be the owner of an accounting firm, a 33-year-old businessman, and a 56-year-old man who allegedly acted as a “recruiter” for the individuals used as “straw men.” The remaining ten detainees were released on restrictive conditions, and some on bail ranging from 5,000 to 20,000 euros.
What the lawyer and the two accountants argued
During his defense, the lawyer denied the charges against him, arguing that his alleged involvement in the case was limited to the performance of his professional duties and the execution of instructions he received from his clients. According to his claims, he had no connection to “straw man” networks or to the creation of fictitious corporate structures. As he reportedly claimed, his collaboration involved a limited number of businesses for which he had been entrusted with specific legal tasks, which he carried out within the bounds of the law.
For his part, the 45-year-old accountant denied any involvement in the criminal group, either as a member or as a leader. According to reports, he explained that the services he provided were limited exclusively to payroll tasks and that he did not undertake any other tax-related work for those specific companies.
As he reportedly stated, he had worked with nine companies, which had total debts of approximately 2 million euros, clarifying that these debts are currently under a debt settlement arrangement. At the same time, he maintained that he had no personal relationship with the owners of the businesses.
His 55-year-old colleague also categorically denied the charges against him; who had been hospitalized for the previous 24 hours at a hospital in Thessaloniki due to a health issue he cited and was escorted by police to the courthouse at noon.
The 56-year-old who allegedly recruited “straw men”
Earlier, on the third day of the marathon trial, a 56-year-old man appeared in court, entered a plea, and was remanded in custody; the indictment alleges he acted as a “recruiter” for certain “straw men”. According to the investigation’s findings, the debts linked to the businesses in which he is alleged to have been involved amount to approximately 19 million euros. During his testimony, he reportedly claimed that he began issuing business licenses while working as a waiter. As he stated, he had come into contact with at least 145 businesses due to his professional activities and the experience he had gained in this specific field. According to reports, he pointed out that no proof of tax or social security compliance is required to obtain a business license, while denying that he had access to the companies’ financial records or was aware of their debts.
Two “straw men” released
Today, two individuals also testified who, according to the case file, appeared in corporate structures as managers or partners without actually engaging in any business activity (“straw people”). Among them is a 27-year-old woman who reportedly claimed that she had been told she could join an OAED subsidy program and work as a cleaner or waitress, while receiving money for a period of time. As she explained, she began to worry when she received court documents regarding debts owed by companies with which she appeared to be associated. At that point, according to her claims, they reassured her by telling her to sign a power of attorney, assuring her that they would settle the matter.
The second suspect is a 45-year-old man who, according to the case file, has appeared since October 2022 in a total of 21 legal entities—as a manager in 15 and as a partner or member in the other 6. These corporate entities are alleged to have accumulated debts totaling 4.2 million euros, while he himself had no assets and, until then, had been living below the poverty line, having enrolled in government social assistance programs.
During his testimony, he denied any involvement in shell companies, claiming that he had no substantial involvement in the businesses in which he was listed.
The main investigation continues
Today’s rulings concluded the round of testimony from the 16 individuals who had been arrested as part of the major operation to dismantle the ring. The case, however, still has a long way to go.
The voluminous case file includes a total of 1,283 individuals, and the preliminary investigation is ongoing. In this context, the investigating judge is expected to evaluate all the evidence and findings of the investigation in order to proceed with the next steps. In this context, it is not ruled out that she may issue arrest warrants for individuals named in the case file or issue summonses to appear for questioning, according to sources familiar with criminal procedure.
