A 48-year-old lawyer accused of playing a leading role in a tax and social security contribution evasion scheme involving shell companies is appearing today before Thessaloniki’s third special investigating magistrate. Four other defendants also arrived at the courthouse, while the hearings are expected to conclude on Thursday.
Seven defendants appeared before the investigating magistrate on Tuesday. A 34-year-old man who allegedly managed an accounting firm was remanded in custody, while four business owners and two alleged straw men were released under conditions barring them from leaving the country and requiring them to report regularly to a police station. The business owners were also ordered to post bail ranging from €5,000 to €20,000. The two alleged straw men admitted handing over their TAXISnet login credentials but maintained that they were unaware the credentials would be used for tax evasion.
The case file includes 1,283 defendants and 917 businesses, primarily in the restaurant and nightlife sectors in Thessaloniki and Halkidiki. An investigation by Greece’s Independent Authority for Public Revenue (AADE), launched in April 2024, identified four interconnected networks that allegedly used 80 straw men as company managers. According to the findings, 12 of those individuals were deceased.
The lawyer allegedly worked with accountants to establish and manage sham companies.
According to the authorities, the businesses continued operating, often with the same staff and premises, while changing their legal entity and tax identification number whenever unpaid taxes and social security contributions accumulated. Although they issued receipts and registered employees, they allegedly failed to remit the corresponding amounts. The estimated losses to the state and the national social security agency (EFKA) total €206.2 million. The lawyer allegedly worked with accountants to establish companies and recruit nominal managers.
A total of 18 arrests were made, including two for misdemeanor weapons offenses. Those two individuals were released. The remaining 16 face various charges, including participation in a criminal organization, fraud and forgery against the state, and money laundering. Two other business owners are being sought, with international arrest warrants issued for them, according to CNN Greece.
Sources: Kathimerini, To Vima, CNN Greece, in.gr, EfSyn, News247.
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