AADE: Massive fraud involving hundreds of “ghost” companies and debts of €43 million

A highly organized ring of straw persons, who appeared as managers of retail outlets and other businesses in the food service sector and the computer trading industry, has been uncovered by auditors of the Independent Authority for Public Revenue (AADE). According to AADE’s announcement, the ring operated in the form of a criminal organization, using 205 individuals—mainly of foreign origin—as managers of 380 companies, including a well-known fast-food chain.

The leaders of the ring are 10 Greek nationals and one foreign national, who were arrested by AADE auditors following a coordinated operation at their homes, carried out from the early morning hours until noon.

Auditors tracked them down by utilizing the results of investigations conducted through the special algorithm used by AADE to monitor transactions, as well as the overall tax behavior of these businesses.

Specifically, the algorithm raised a red flag when it was discovered that 317 of these companies, which had accumulated debts of €27 million to AADE and €16 million to EFKA (the Unified Social Security Fund), would “disappear” whenever an audit was initiated, only to be replaced by another company with a different Tax Identification Number (VAT number).

At the 11 homes searched, authorities seized:

• €100,000 in cash
• 110 bank debit cards belonging to the natural persons (straw persons and fabricated identities)
• Numerous documents containing details of the straw persons and shell companies
• 110 company seals belonging to various firms
• POS devices
• Hard drives
• 4 laptops
• 1 tablet
• 3 desktop computers
• Prepaid mobile phones
• And a banknote counting machine.

According to AADE’s announcement, those arrested are being taken to the General Police Directorate of Attica.