New details emerge about the criminal network involving fake companies, which implicated well-known names from Greek showbiz. According to the Greek Police report, there have been 22 arrests, while there are 40 defendants, including four accountants who allegedly played leading roles, and a total of 226 legal entities have been investigated.
Which celebrities are involved in the fake companies fraud
According to Star TV and the report from the show “Truths with Zina“, among those allegedly involved are the following well-known figures from Greek showbiz:
- Model with television presence
- Model with reality show appearances (not yet arrested)
- Well-known former reality show contestant (not yet arrested)
- TikToker with business activities
- Business owner operating massage parlor
- Entertainment venue owner
These individuals came under scrutiny due to the businesses they maintained, which allegedly connected to the criminal network.
Specifically, these include:
- Nightclub in Peristeri
- Cocktail bar in Byron
- Coffee shop in Petroupoli
- Grill house in Monastiraki
- Nighttime venue on Pireos Street
- Massage services business
- Coffee shop in Pangrati
How the fake companies and insurance fraud network operated
These were shell companies without real activity, which issued fictitious invoices and laundered illegal money. These companies appeared to be managed by straw men – essentially non-existent individuals with fabricated details and stolen tax numbers, as well as foreigners whose identities had been stolen or lost. The illegal profits were channeled into bank accounts and subsequently invested in luxury real estate and vehicles, in an attempt to legitimize illegal money.
“In this case we have a series of businesses, which were legitimate and produced real economic results, mainly in the restaurant sector. So what happened there? Beyond these companies, there were other companies behind them, which had no business purpose, with proxy persons, what we usually call straw men, who issued invoices to the legitimate businesses, in order to avoid paying VAT and taxes. That is, to explain exactly. If we have a coffee shop, which at the end of the month must pay 10,000 euros VAT. To avoid paying this VAT, it accepts invoices from the fictitious businesses, as expenses“, explained tax consultant Stavros Stavroulias on the show.
The VAT damage to the Greek state is estimated at 11,000,000 euros. However, their activity doesn’t stop there. The network also conducted fictitious employee insurance, causing 33,000,000 euros damage to social security.
“But beyond VAT, it appears that in this specific case they had also used personnel. That is, apparently they had other companies that hired staff and not the real companies. Thus, the contributions were never paid. That is, we have a coffee shop that employs 10 people, but the staff has been hired by another company which doesn’t pay the insurance contributions and rents the staff to the real company to do its work“, commented Mr. Stavroulias.
