The first suspects arrested in connection with an alleged tax evasion network operating in the hospitality and nightlife sectors in Thessaloniki are expected to appear before an investigating magistrate today, as authorities continue to examine a case involving more than 1,200 defendants.
According to in.gr, the alleged loss to the Greek state exceeds €206 million.
Among those due to give evidence are businesspeople, accountants, a lawyer and former model and actor Errikos Petilon. The 16 suspects are expected to be questioned through Thursday, while two additional individuals remain wanted by authorities.
How the alleged scheme operated
According to details reported by in.gr, the organisation allegedly used dozens of "front men" as nominal managers of businesses in order to avoid paying taxes and social insurance contributions.
The alleged real operators are said to have recruited people facing financial difficulties, low-paid workers, seriously ill individuals and even deceased persons to appear as company directors, primarily in businesses operating in the food service and entertainment sectors.
Evidence uncovered during the investigation
Investigators reportedly discovered an electronic file containing a detailed inventory of equipment belonging to a well-known venue in the Ladadika district.
According to auditors from the Independent Authority for Public Revenue (AADE), the file demonstrated how equipment was transferred from one company to another when previous companies accumulated debts.
Authorities also located a digital file containing 161 tax identification numbers and telephone numbers.
Cross-checks allegedly showed that the telephone connections did not belong to the officially registered managers but to individuals believed to have exercised actual control over the businesses.
Investigators also attached significance to the discovery of common email addresses, with at least 250 companies reportedly using the same email account or variations of it in dealings with public authorities.
Former athletes named in case file
According to in.gr, the case file involving 1,283 defendants also includes several well-known sports figures.
Those named include former footballers Pantelis Kafes, Spiros Vallas and Petros Kanakoudis, as well as former international basketball player Panagiotis Liadelis.
However, the case file does not clarify the extent of their alleged involvement.
Petilon first to testify
Errikos Petilon is expected to be the first suspect to appear before investigators.
According to the investigation, he is listed as manager of eight companies with combined debts approaching €596,000.
Reports indicate he intends to explain how he became involved in the companies, who approached him and what payments he allegedly received.
Meanwhile, one of the principal defendants, an accountant who remains in custody, is being treated under guard at a hospital in Thessaloniki. His lawyer says he is suffering from a serious health condition.
Source: in.gr
