Μake us preferred on Google The first 10 people arrested in a major tax evasion investigation involving Greek pizza chain Pizza Fan are appearing before an investigating judge in Athens on Monday, as authorities examine allegations of a scheme that cost the state €25 million.
A total of 23 people have been arrested in the case and face serious felony charges. Their statements to the judicial authorities are being taken in groups, with the main suspects scheduled to appear on Tuesday. Among them is the businessman who led the operation and owns Pizza Fan.
Investigators reportedly found 92 luxury watches, jewelry and cash totaling more than €1.17 million during a search of the businessman’s home.
The case file contains extensive evidence about how the scheme operated, including recorded conversations between suspects. Investigators believe the activity may have continued for approximately a decade.
The charges vary by suspect and include forming, participating in or directing a criminal organization; tax evasion exceeding €150,000 through unpaid value-added tax (VAT) and inaccurate income declarations; aiding specific offenses; and aggravated money laundering.
All allegations remain under investigation, and the defendants are presumed innocent unless and until a final court judgment establishes otherwise.
Investigators examine use of fake complimentary orders
A central focus of the investigation is the use of complimentary items, or “treats,” to conceal taxable revenue, as reported on Greek media.
According to conversations included in the case file, the business owner discussed identifying stores that could record more complimentary orders through the company’s TAKE system but were not doing so.
In one exchange, the owner told an associate that the criteria for delivery orders would be adjusted, while asking why certain stores were not making greater use of the complimentary-order system. He questioned whether staff knew about the option but were choosing not to use it or had failed to understand it.
Other conversations appear to address how employees handled customers who requested receipts for orders initially recorded as complimentary.
In one exchange, an associate described a case in which a receipt had not been delivered to a customer because the order had been treated as a complimentary item. After the customer requested the receipt, it was issued, but employees could then see that it had been recorded in the system.
The owner asked whether the receipt could be displayed differently and instructed the associate to ensure that, when a customer complaint was received, employees checked the system to determine whether the order had been classified as complimentary.
The conversations form part of the evidence being examined by investigators and do not, by themselves, establish the guilt of those involved.
Former employees accuse labor law violations
Former employees have also claimed violations of labor law, including discrepancies between their declared and actual working hours.
One former delivery worker said the company had registered him as working four hours a day, although he had worked 10-hour shifts six days a week for a year without a day off. He also alleged that, during an inspection by Greece’s social security authorities, two people had hidden inside a refrigerator at a store.
Around 2,500 employees face uncertainty
The investigation and the closure of Pizza Fan’s stores have left approximately 2,500 employees unsure about their employment status and whether they will receive outstanding wages.
With the stores closed and no orders being taken, employees say they have not been dismissed or placed on temporary suspension. This leaves them unable to register as unemployed and claim unemployment benefits.
Deputy Minister for Social Security Konstantinos A. Karagkounis said Sunday that the government was in contact with employee representatives and would monitor developments. He stressed that the employer was legally required to pay wages and other compensation owed to staff.
Speaking to public broadcaster ERT, Karagkounis also said the Labor Inspectorate could conduct checks even without a formal complaint. If violations are established, penalties could follow.
Employees are demanding payment of their outstanding wages and the recording of their social security contributions, as well as guarantees concerning their jobs.
A protest was scheduled for Monday, October 26, at 2 p.m. outside Pizza Fan’s offices in Chalandri, near Athens, following a call by the Attica Food Service, Tourism and Hotel Workers’ Union.
A second demonstration is planned for Tuesday, October 27, at 10:30 a.m. outside the Ministry of Macedonia and Thrace in Thessaloniki, organized by the union representing tourism and food service workers in Thessaloniki, Pieria and Halkidiki.
