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> Greece

AADE uncovers massive ‘front’ network: 380 businesses, €43M in debts, 11 arrests

The AADE uncovered a sophisticated criminal network using 205 foreign nationals to operate 380 shell companies, accumulating €43 million in debts, including connections to a major fast-food chain

Newsroom February 12 06:50

A highly organized network of “front” people, who appeared as managers of stores and other businesses in the catering and computer retail sectors, was uncovered by inspectors of the Independent Authority for Public Revenue (AADE).

The network, operating as a criminal organization, used 205 individuals, mostly of foreign origin, as responsible persons for 380 businesses, including a well-known fast-food chain.

The leaders of the network are 10 Greeks and one foreign national, all of whom were arrested by AADE inspectors during a coordinated operation at their homes, conducted from early morning until midday.

The inspectors traced the network using the results of a specialized algorithm employed by AADE to monitor transactions and assess the overall tax behavior of these businesses.

Specifically, the algorithm flagged 317 of these businesses, which had created debts of €27 million to AADE and €16 million to EFKA, because they “disappeared” whenever inspections were initiated, replaced by another company with a different tax identification number.

At the 11 residences searched, authorities seized:

  • €100,000 in cash
  • 110 bank withdrawal cards belonging to both the front people and fabricated identities

Additionally, they confiscated:

>Related articles

Mitsotakis on the dismantling of networks by AADE and the Hellenic Police: “‘Legality Everywhere’ is a constant commitment for us”

The trick with one-time tax IDs: How a network of straw men made millions through fake shell companies

Giannis Panagopoulos: The lifelong president of GSEE and the paths of millions, who is being investigated by the Anti-Money Laundering Authority

  • Numerous documents containing information about the front people and shell companies
  • 110 company seals
  • POS devices
  • Hard drives
  • 4 laptops
  • 1 tablet
  • 3 desktop computers
  • Prepaid mobile phones
  • 1 banknote counter

The arrested individuals are being taken to the General Police Directorate of Attica.

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