Fraud exceeding €5 million against e-EFKA: political party leader before prosecutor
The leader of an extra-parliamentary political party and his wife were arrested on charges of fraud and tax evasion against e-EFKA, with losses exceeding €5 million.
Dozens of shell companies and €5 million in damages: political party leader before prosecutor
The leader of an extra-parliamentary political party and his wife appeared before the prosecutor today, having been arrested yesterday in connection with a major case of fraud and tax evasion against e-EFKA and the Greek state, according to Dikastiko.gr. The couple are accused of heading a criminal organisation, and are expected to request an extension to prepare their defence statements, as the case file includes felony-level offences.
The case was uncovered following months of investigation by the Economic Crime Prosecution Directorate and the Financial Intelligence Unit for Combating Money Laundering from Criminal Activities. The total damage to the state is estimated to exceed five million euros, of which more than one and a half million relates to unpaid insurance contributions to e-EFKA alone.
The mechanism: shell companies and 'straw men'
According to the case file evidence, the mechanism allegedly set up was based on a repeated practice of defrauding public funds. Those involved allegedly established dozens of shell companies, using as "straw men" individuals who faced serious financial difficulties.
As the police force reports, the method of operation followed a consistent pattern. The companies — mainly in the catering and clothing sectors — were created and operated for a certain period, but failed to pay insurance contributions to e-EFKA or corresponding taxes to the state. As debts accumulated, the network allegedly proceeded with sudden closure of the businesses, leaving unpaid debts behind.
Subsequently, according to the same evidence, the perpetrators opened new shell companies and repeated the same procedure, perpetuating the fraud scheme.
Banking transactions and fictitious invoices under investigation
The investigations of the competent authorities are not limited to unpaid contributions and taxes. At the centre of attention are also the banking transactions of those involved, whilst a court order has been issued for lifting of telephone secrecy to reveal the network's connections. Investigators are additionally examining the possible issuance of fictitious invoices to the political party of the person heading the case.
Source: Dikastiko.gr