Major tax evasion network dismantled in Thessaloniki

Greek authorities have dismantled an extensive tax evasion network operating primarily in Thessaloniki, Chalkidiki, and Mykonos, involving the exploitation of over 1,280 individuals as 'straw men' to facilitate fraudulent financial activity. The operation, led by the Independent Authority for Public Revenue (AADE), uncovered 917 shell companies used to accumulate more than 206 million euros in unpaid VAT, income taxes, and social security contributions over the past three years. Investigations revealed that the organization recruited vulnerable individuals, including those with serious health issues or financial hardship, and even utilized the identities of 12 deceased persons to issue invoices and manage businesses.

Eighteen individuals were initially arrested, including prominent local business owners in the nightlife and catering sector, three accountants, and a lawyer who allegedly orchestrated the scheme. Among the 1,283 named suspects are former professional athletes, including Pantelis Kafes, Spyros Vallas, Petros Kanakoudis, and Panagiotis Liadelis, as well as model and actor Errikos Petilon. While the accused are currently facing the investigating magistrate, Petilon has denied involvement, claiming his identity was misused without his knowledge. The investigation remains ongoing as authorities continue to process the case and search for two additional suspects believed to have fled abroad.