The “Choriatiko” case: A brief history

The key facts

The bakery chain “Choriatiko” is at the centre of a major police investigation into alleged tax fraud, with estimated losses to the Greek state exceeding €100 million.

A central figure in the investigation is businessman Angelos Giannakopoulos, the owner of the chain, who was arrested yesterday in Ioannina.

A total of 59 people have been arrested in connection with the case, including a former trade unionist from GENOP-DEI, the Public Power Corporation workers’ federation. The Anti-Money Laundering Authority has frozen their assets.

How did the scheme work?

Authorities are investigating a network involving around 520 shell and legitimate businesses operating in locations including Athens, Rhodes and Mykonos.

The network allegedly relied on around 150 “straw men”, individuals listed as company owners or managers without exercising actual control over the businesses.

These companies accumulated debts to the Greek state and the social security agency EFKA before disappearing, avoiding tax payments while allowing their business activities to continue through other entities.

The cat-and-mouse game in Dubai

Police initially carried out inspections at Giannakopoulos’s businesses to create the impression that the investigation had been completed, hoping to prompt his return to Greece from Dubai, where he had reportedly been staying.

Authorities were also investigating whether he was planning to leave Greece again via Albania, as he was reportedly subject to travel restrictions that prevented him from departing through airports.

Not his first run-in with the authorities

Giannakopoulos has previously faced legal proceedings.

Among other cases:

• 2008: He was arrested over alleged involvement in a human trafficking network.
• 2015: He was sentenced at first instance to 10.5 years in prison for offences including human trafficking and participation in a criminal organisation. He appealed, suspending enforcement of the sentence.
• 2018: He was unanimously acquitted*, along with 19 other defendants, in a second, separate case involving related offences.

The 2018 acquittal concerned a different case from the 2015 conviction.

Is trafficking also part of the investigation?

Authorities are also investigating a possible connection between the case and activities involving procuring and the sexual exploitation of women.

Among the businesses under scrutiny are nightclubs on Syngrou Avenue, where a 90-year-old man from Salamina was allegedly used as a front.

Investigators are also examining whether money from such activities was laundered through businesses in the network.

Sources

Kathimerini [1], [2], [3], [4], News24/7 [1], [2], [3], in.gr