Μake us preferred on Google A major tax evasion investigation in northern Greece has uncovered a network of shell companies, nominee managers and unpaid taxes and social security contributions, with total debts to the state estimated at more than €206 million.
The investigation, led by a special team from Greece’s Independent Authority for Public Revenue (AADE), began in 2024 and expanded across Thessaloniki, the Halkidiki peninsula and other cities in northern Greece, including Kavala, Serres and Katerini.
The two-year operation, codenamed “Nominee Managers,” culminated in 18 arrests on Friday night.
Among those arrested is Errikos Petillon, who served as a manager of six legal entities and a partner in two others. The eight companies in which he participated have combined debts of €595,976.53.
At the center of the investigation are four networks operating in Thessaloniki and controlling dozens of restaurants and nightclubs. The businesses reportedly generated substantial revenue while failing to pay taxes and social security contributions.
The surprise operation targeted companies running well-known entertainment venues and restaurants in Thessaloniki and Halkidiki. Investigators allege that the businesses used front men and nominal company managers to evade their financial obligations.
917 companies under investigation
According to the case file, which is still being compiled, authorities are examining 917 companies with total debts to the state of €206,269,437. Of that amount, approximately €138 million relates to unpaid taxes and the remaining €68 million to social security contributions.
A total of 1,283 people are reportedly under investigation. They include well-known figures from the sports world who have ownership ties to companies involved in the case.
Around 80 individuals allegedly acted as nominal partners or company managers. Some were listed in more than 10 companies simultaneously, even though tax authorities had already flagged their tax identification numbers as problematic.
How the shell-company scheme worked
The investigation began with the owners of the properties where the businesses operated.
During the prosecutorial inquiry, inspectors found that restaurants and entertainment venues in prominent locations were rented through property management companies allegedly controlled by the actual business owners.
The rental agreements included the right to sublease the premises. The property management companies could therefore rent the venues to other businesses, which investigators say served as fronts.
Inspectors took statements from property owners and employees at restaurants and nightclubs in an effort to identify the people who actually controlled the businesses.
Witness accounts pointed to an individual known as “Tommy,” who fired employees by text message. Investigators also found that wages were paid in cash.
Most employees knew little about the people officially listed as company managers, who were acting as nominees. They were, however, able to identify the actual business owners, who appeared on staff records under job titles such as doormen or consultants.
Investigators used these accounts to identify the people directing the companies behind the scenes.
12 nominal managers were already dead
One of the most striking findings was that 12 of the approximately 80 nominee managers named in the extensive case file had already died.
Investigators found that invoices and other business documents continued to be issued in the names of some deceased individuals, including people who had died as early as 2023.
In some cases, partners took over company management using powers of attorney, including in companies established after the death of the people listed as their managers.
Most of the nominees were low-paid employees in the restaurant and nightlife industries, including waiters and kitchen cleaners. Many reportedly signed documents in exchange for additional payments, while claiming they did not know the role they had been assigned.
In one case, an employee has taken legal action after allegedly discovering that he had been listed as a company manager without his knowledge.
The debts recorded in the names of some workers are substantial. One employee at entertainment venues, who usually worked as a cashier, is listed as owing €18.4 million to the state and social security funds. He had been involved in 32 companies, serving as a manager in many of them.
A kitchen cleaner earning €450 a month is listed as owing €2.6 million after also being linked to 32 companies. A delivery driver, meanwhile, was involved in 19 companies and is listed as having debts of €3 million.
Defendants expected to appear before investigators Tuesday
Sixteen defendants have been charged with participation in a criminal organization, fraud, forgery and money laundering. They are expected to begin giving statements to investigating authorities on Tuesday.
Among them is a prominent businessman from the nightclub and restaurant sector. Other high-profile individuals named in the charges were not arrested because authorities were unable to locate them.
Given the volume of documents and the large number of defendants, authorities are considering splitting the case into two separate proceedings. Once the defendants have given their statements, the files could be assigned to two different investigating judges.
