A slew of Greek companies involved in the construction business were “nabbed” by the independent Anti-Money Laundering Authority after they were reportedly engaged in “fake” transactions that resulted in the state incurring damages amounting to €13.4 million in a financial year.

The audit revealed that 32 companies were colluding in the scheme, with Greek authorities investigating 19 individuals.

Some of the violations uncovered during the inspection included unpaid arrears, evasion of VAT payment, and tax refunds worth €4 million.

The large fraudulent network was established in 2023 with subsidiary companies headquartered in rural areas. According to the financial authorities, the fake companies reported exorbitant revenues in a short period despite having a small client and supplier list.

The Anti-Money Laundering Authority became aware of the network after identifying an individual already known to the Authority from previous cases, who had signed off on all financial statements under scrutiny.

Authorities also found that the tax declarations of the companies under investigation had been cleared by Greece’s Independent Authority for Public Revenue (AADE) on a specific date without any prior audit.

Officials of the Authority, led by its president, Charalambos Vourliotis, have frozen the assets of all individuals involved and forwarded their findings to the Athens Prosecutor’s Office for further criminal investigation. The alleged offenses include participation in a criminal organization, money laundering, and tax evasion, all classified as felonies.