Major tax evasion syndicate dismantled in Thessaloniki nightlife sector

Greek authorities, led by the AADE (Independent Authority for Public Revenue) special unit DEOS, have dismantled a massive tax evasion and money laundering syndicate operating within the nightlife sector in Thessaloniki and Halkidiki. The operation resulted in the arrest of 18 individuals, including prominent business owners, a lawyer, accountants, and public figure Errikos Petilon. The network reportedly utilized over 900 shell companies and 4,200 tax identification numbers over a three-year period to hide the true beneficiaries behind 'straw men,' often recruited from vulnerable populations near hospitals.

The illicit scheme caused a total loss of approximately 206 million euros to the state, comprising 138 million in taxes and 68 million in social security contributions. Investigators discovered evidence of systematic tax fraud, including hidden ledgers and manipulated point-of-sale data, which enabled the perpetrators to maintain a lavish lifestyle. The case is now being processed by the Thessaloniki prosecutor.

Following the initial arrests on November 7, 2026, 16 suspects were brought before the 3rd special investigator to face felony charges. The authorities are continuing their investigation into over 1,200 potential accomplices and thousands of associated entities. The AADE governor, Giorgos Pitsilis, confirmed that the investigation remains active as they hunt for additional key players involved in this systemic financial misconduct.