Greek Probe Into $239 Million Shell Company Fraud Jails First Suspect, Ex-Model Freed

A Greek investigating magistrate has ordered one suspect jailed pending trial in a sweeping tax and social security fraud case in northern Greece.

Authorities say the scheme used shell companies run by front men, some

The suspect, who allegedly ran a business services office, denied all charges, according to news site voria.gr.

"I have no connection," he reportedly told the magistrate, saying he took the job in early 2025 to support his family and that he is not an accountant.

Six other suspects who testified Tuesday, including former actor and model Errikos Petilon, were released under restrictions.

Mr. Petilon reportedly said he had been deceived, while a 35-year-old suspect said his tax system login codes had been stolen.

Four business owners were freed on bail. Two reportedly admitted to some charges, saying they acted to help their companies recover after the coronavirus pandemic. Hearings continue this week.

The investigation by Greece's tax authority, launched in 2024, found that 917 companies were involved.

Restaurants and nightclubs in Thessaloniki, Halkidiki and elsewhere were allegedly registered to 80 front men, including employees with no assets, while the real owners stayed hidden.

Twelve of the front men were dead, yet invoices continued to be issued in their names.

The suspects face charges including forming a criminal organization, fraud, forgery and money laundering.

It is the third major tax fraud case to emerge in Greece in recent weeks, after investigations into the Pizza Fan and Horiatiko food chains.

All suspects are presumed innocent.

Διαβάστε περισσότερα στο iefimerida.gr

A Greek investigating magistrate has ordered one suspect jailed pending trial in a sweeping tax and social security fraud case in northern Greece.

Authorities say the scheme used shell companies run by front men, some of them dead, and cost the state more than 206 million euros ($239 million).

The suspect, who allegedly ran a business services office, denied all charges, according to news site voria.gr.

"I have no connection," he reportedly told the magistrate, saying he took the job in early 2025 to support his family and that he is not an accountant.

Six other suspects who testified Tuesday, including former actor and model Errikos Petilon, were released under restrictions.

Mr. Petilon reportedly said he had been deceived, while a 35-year-old suspect said his tax system login codes had been stolen.

Four business owners were freed on bail. Two reportedly admitted to some charges, saying they acted to help their companies recover after the coronavirus pandemic. Hearings continue this week.

The investigation by Greece's tax authority, launched in 2024, found that 917 companies were involved.

Restaurants and nightclubs in Thessaloniki, Halkidiki and elsewhere were allegedly registered to 80 front men, including employees with no assets, while the real owners stayed hidden.

Twelve of the front men were dead, yet invoices continued to be issued in their names.

The suspects face charges including forming a criminal organization, fraud, forgery and money laundering.

It is the third major tax fraud case to emerge in Greece in recent weeks, after investigations into the Pizza Fan and Horiatiko food chains.

All suspects are presumed innocent.

Διαβάστε περισσότερα στο iefimerida.gr