A widening investigation into alleged fraudulent European agricultural subsidies in Greece brought dozens of suspects before prosecutors Wednesday, after police operations in Crete and northern Greece uncovered what authorities describe as an organized network exploiting weaknesses in the country’s farm subsidy system.
Twenty-two people arrested in Crete arrived at the port of Piraeus early Wednesday before being transferred to the offices of the European Public Prosecutor’s Office (EPPO), where they were questioned over their alleged role in the scheme. According to the case file, the alleged criminal organization, which was dismantled by Greek police, including officers from the Organized Crime Directorate, often referred to as the “Greek FBI” , involves 138 individuals in total. Authorities said 22 people have been arrested so far, while bank accounts belonging to 18 suspects have been frozen. Investigators estimate the alleged fraud caused roughly 3 million euros in damages.
The case centers on OPEKEPE, Greece’s now defunct agency responsible for managing and distributing European Union agricultural subsidies.
Raids Across Crete
The investigation intensified Monday when heavily armed police units carried out simultaneous raids in the regions of Rethymno, Heraklion and Lasithi in Crete. Authorities searched homes and offices believed to be linked to the alleged scheme. Investigators also conducted inspections at Declaration Submission Centres — facilities that assist farmers with subsidy applications — in Ierapetra and Lasithi over possible involvement in the operation.
Among those arrested is a deputy mayor, while investigators identified two accountant brothers from Rethymno as the alleged masterminds behind the network. According to authorities, the network allegedly exploited gaps in land registration records to claim subsidies on undeclared farmland through intermediaries and front individuals. Police said the alleged scheme had been operating since 2019.
How the Alleged Scheme Worked
According to investigators, the accountant brothers allegedly collaborated with individuals connected to subsidy application centers, who acted as intermediaries. Authorities claim that the network identified undeclared agricultural plots and used proxy applicants to falsely declare ownership or usage rights in order to collect subsidies. The subsidies were then allegedly distributed among intermediaries and organizers.
The investigation has also raised broader concerns about weaknesses in cross-checking land ownership and subsidy claims.
Defense lawyers for some of the suspects argue that their clients were legitimate beneficiaries who carried out genuine agricultural activity. Attorney Theodoris Karagiannis told Greek state broadcaster ERTnews that the case file had not yet been fully provided to defendants, limiting their ability to assess the evidence against them. According to the defense, some suspects maintain they legally possessed or leased the plots in question and either cultivated the land themselves or used it for agricultural production.
A central issue in the investigation is the apparent lack of integration between OPEKEPE’s records and Greece’s national land registry, which investigators say created gaps allowing undeclared plots to be registered without sufficient verification.
Investigators have also highlighted the fact that oversight was limited, with many checks carried out only selectively instead of through systematic field inspections. Authorities are now attempting to determine whether actual cultivation or agricultural production took place on the disputed land parcels, particularly in cases dating back to 2018-2020.
Parallel Investigation in Thessaloniki
A separate but related investigation in Thessaloniki has also expanded significantly.
According to information cited by the Greek public broadcaster, 17 suspects have been arrested in northern Greece, while the broader case file reportedly includes around 300 individuals. The suspects are also expected to appear before a European prosecutor.
Investigators allege that 285 people in the Thessaloniki case exploited undeclared farmland in a similar manner by submitting subsidy applications and receiving payments through OPEKEPE. Another 15 individuals are accused of attempted fraud after allegedly failing to secure payments between 2019 and 2024.
Reports indicate that some of the main suspects had previously come under investigation for alleged fraud. However, those earlier misdemeanor-level cases ended in acquittals as OPEKEPE failed to file formal complaints.
Greek authorities said investigations are continuing across Crete and other parts of the country.
