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A charity established to help children with serious illnesses is at the center of a widening fraud investigation in Greece, with police alleging that its members diverted millions of euros in donations while families were left with only a fraction of the money raised in their children’s names.

The investigation into the nonprofit organization, known as Paidiki Chara (Children’s Joy), has uncovered 29 bank accounts and more than 246,000 transactions dating from 2018, according to details reported by Greek media.

The organization raised approximately €3.9 million through bank transfers and donation boxes. Of that amount, only €1.1 million was distributed to 55 identified cases involving children, while the remaining €2.8 million allegedly ended up with the accused, according to the police investigation.

Six people have been arrested. Police spokeswoman Konstantia Dimoglidou said they were among the alleged leading members of the organization.

At the center of the case is a 37-year-old man accused of leading the group, who had business and sporting interests in northern Greece and maintained a public profile as an active member of civil society. Investigators say donations were also transferred through the IRIS instant-payment service into his personal bank accounts.

Earlier complaint against the leader’s partner

New details have emerged about the 35-year-old partner of the alleged ringleader, who was reportedly accused in 2018 of misappropriating money collected to help a sick child.

By October of that year, the couple had already established the Paidiki Chara nonprofit. On Nov. 14, 2018, a criminal complaint was filed against the woman, who had reportedly volunteered with another organization.

According to the complaint, she approached people on the street, presented herself as a representative of that organization and solicited donations for a child who urgently needed to travel abroad for medical treatment.

The complaint alleged that she had no authorization from the organization to conduct the fundraising and that the money she collected was never handed over to it. The case was referred to the courts.

Attempt to divert donations for Panagiotis-Rafail

The group is also alleged to have tried to redirect donations intended for Panagiotis-Rafail, a child whose fundraising campaign for treatment abroad had drawn widespread public attention in Greece.

Around €3 million was needed for the child’s treatment, and the official fundraising effort was being handled by MDA Hellas, an organization supporting people with neuromuscular diseases.

According to information reported by To Vima and Ta Nea police correspondent Vassilis Lampropoulos, members of the group allegedly urged members of the public not to donate to MDA Hellas but to support their own organization instead.

Donations were reportedly solicited under the description “Financial support for Panagiotis-Rafail,” with collection boxes placed at various locations around the country.

The alleged practice also extended to nightclubs, where the group reportedly placed donation boxes during events featuring well-known singers.

How the alleged fraud operated

The investigation began after an anonymous complaint to police. A separate account of the case says the inquiry was prompted by a mother’s complaint that a fundraising account had been blocked.

Investigators allege that the group systematically withheld between 80% and 100% of some amounts collected. In one case, €340,000 was raised but only €55,000 was handed over. In another, €74,000 was collected without any money reaching the intended beneficiaries.

The group allegedly used donation boxes at Christmas events and nightclubs to collect money. Donors were also asked to pose for photographs, creating what investigators described as a false impression of transparency.

The alleged operation also sought to capitalize on major tragedies and other events in the news, directing members of the public to the group’s own support lines.

The investigation found that the organization approached recognizable figures, including artists, athletes, businesspeople and social media influencers, asking them to publicize appeals for help. The appeals reportedly used genuine medical documents and photographs of children.

According to testimonies and evidence in the case file, families were subjected to abusive conditions, with the group allegedly retaining as much as 60% to 70% of the donations in some cases. When parents or other parties attempted to organize independent fundraising campaigns, members allegedly applied pressure, threats and psychological coercion to make them abandon those efforts.

The case file includes several examples of the amounts allegedly withheld:

• In a 2021 fundraiser for a child who later died, €140,000 was collected, but the family received only €7,000.
• In a separate campaign in 2026 for another child who died, €360,000 was raised, of which €56,000 went to the family.
• In a case involving a child with a neurological condition, none of the €80,000 collected was reportedly handed over.

Luxury spending and alleged fake businesses

Police say the alleged proceeds funded an extravagant lifestyle for the 37-year-old, despite his public presentation of the charity’s work as a volunteer effort.

The spending reportedly included suites at luxury hotels in Athens and Thessaloniki, expensive clothing, restaurant visits and spa treatments, some of which were showcased on social media. During searches of the suspects’ homes, police found large amounts of cash hidden in bags and drawers.

An eatery in Kalamaria, near Thessaloniki’s city hall, allegedly served as the group’s operational base. The 37-year-old and his 35-year-old partner held a combined 95% stake in the business, with another alleged member holding the remaining 5%. Investigators say meetings were held there and money was distributed.

The nonprofit listed an address on Fragkon Street. Authorities are examining whether it operated from actual premises there or whether the address served solely as a registered tax location.

The 37-year-old also appeared as president of the Thessaloniki animal welfare association Adespotes Pатouses (Stray Paws). Investigators are separately examining a sole proprietorship registered for vehicle rentals, which they suspect was fictitious and used to issue false tax documents and create the appearance of income that did not exist.

Alleged links to sports betting

The suspect was also known in sporting circles in the Pieria region. He initially played for Aiginikos soccer club before taking on administrative roles and eventually serving as its president until the summer of 2024.

Police say that while he was involved in the club’s management, during its participation in Greece’s third division, he placed 62 bets on matches involving the team. Investigators also refer to his alleged involvement in systematic gambling.

The case file further includes evidence concerning the movement and laundering of alleged criminal proceeds through betting companies. Recorded conversations reportedly point to the involvement of suspects in networks connected to the manipulation of soccer matches.

Reported attack days before arrest

Authorities are also examining an alleged attack on the 37-year-old shortly before his arrest.

According to a complaint he filed with police on Oct. 27, two men wearing full-face helmets and riding a motorcycle attacked him the previous day, Oct. 26. He alleged that they struck him with brass knuckles and demanded money.

The incident was reported as an attempted robbery because the men failed to take anything from him.

The investigation is ongoing, with donors and affected families calling for the case to be fully clarified and those responsible to be held accountable.