The number of arrests has reached 59 so far as part of a massive operation by Greece’s Organized Crime Division targeting a tax fraud ring centered on the Horiatiko bakery chain, with the total losses to the Greek state estimated to reach or even exceed €100 million.
Those arrested are expected to be brought before the competent prosecutor on Monday afternoon (26/10), while police investigations continue at full intensity as authorities work to map out the full extent of the complex network of businesses and individuals allegedly involved in the case.
Particular focus has been placed on the island of Rhodes, where a massive sweep operation has been underway since yesterday, with police forces conducting checks and searches to identify individuals and evidence potentially linked to the criminal activity under investigation.
It is no coincidence that over the past three years there has been a serious issue on the island, as prime beachfront properties were put up for commercial exploitation. According to sources, individuals and companies emerged unexpectedly and aggressively in the bidding processes, with allegations of shadowy methods and negligence on the part of local authorities.
“Horiatiko”: The fraud ring’s operations dating back to 2016 — The network of 400 companies
According to estimates by the police officers handling the case, the fraud ring’s activity appears to have begun as early as 2016, meaning the alleged tax fraud scheme had been running for nearly a decade.
At the center of the investigation is a network estimated to include more than 400 companies, many of which are alleged to have operated as shell companies.
According to the same sources, those involved allegedly engaged in the systematic creation of new businesses and the dissolution of older ones in order to evade their tax obligations.
Investigators are also looking into the use of nominee individuals — so-called “straw men” — who appeared as company managers or directors, while the actual control is alleged to have been exercised by other parties behind the scenes.
How Greek police trapped the alleged mastermind
Of particular interest is the manner in which officers from the Organized Crime Division managed to bring about the arrest of businessman Angelos Giannakopoulos, who is considered by authorities to be the central figure in the case.
The man had been staying in Dubai in recent months and, according to sources, had twice cancelled his planned return to Greece, reportedly fearing the possibility of arrest.
Police, aware of his movements, are said to have conducted targeted checks on businesses linked to his interests, creating the impression that the investigation was limited to specific corporate activities.
The goal was to mislead the businessman and convince him to return to Greece.
Ultimately, according to the same sources, the alleged mastermind attempted to flee to Albania but was located and arrested in the northwestern Greek city of Ioannina.
Over €200,000 in cash and the hunt for safe deposit boxes
A significant part of the investigation concerns the tracing of funds allegedly derived from the illegal activity.
So far, according to initial police information, approximately €200,000 in cash has been located — however, investigators believe the amounts that have been concealed could be far greater.
Safe deposit boxes are also under scrutiny, as authorities are examining the possibility that significant sums of money may have been stored outside of conventional bank accounts.
Greece’s Anti-Money Laundering Authority has already taken steps, according to available information, to freeze accounts and safe deposit boxes linked to the businessman and companies connected to his interests.
The bakery chain owner is also alleged to have maintained business activities in both Rhodes and Mykonos, with a presence in the nightlife and tourism sectors.
In Rhodes, he is alleged to have operated a beach bar, while in Mykonos at least one arrest has been made of an individual alleged to have collaborated with him and to have been involved in the management of a hotel property.
Sexual exploitation allegations also under the microscope
The investigation, however, is not limited solely to the financial dimension of the case.
Police are examining information regarding the possible involvement of individuals within the network in activities related to the sexual exploitation of women.
Specifically, investigators are looking into whether the alleged central figure controlled adult entertainment venues, and whether he is connected to activities involving the promotion of women through online escort service advertisements.
At present, however, it has not yet been clarified whether the specific findings will lead to additional criminal charges for pimping, as this particular aspect of the case remains under investigation.
The focus of authorities is now firmly on both fully documenting the financial damage and tracing the money trail, with the case being considered one of the largest investigations in recent years into organized tax fraud.
The afternoon appearance of those arrested before the prosecutorial authority is expected to mark the next stage of the criminal proceedings, as operations and searches for additional evidence continue.
