5 million euro fraud against EFKA: 8 arrests including head of LAOS
Eight people have been arrested for a fraud scheme that caused losses to EFKA exceeding 5 million euros through 25 shell companies since 2021.
Network of 25 shell companies targets EFKA – 8 arrests
Eight people have been remanded in custody today following an operation by the Economic Crime Prosecution, with losses to EFKA and the Greek State exceeding five million euros, according to Naftemporiki.
Among those arrested is reportedly Philippos Kampouris, president of the People's Orthodox Mobilisation (Laïkos Orthodoxos Synagermos), and his wife, who were arrested at their home in Alimos. The two are being treated as ringleaders of the network.
Method of operation
According to information from APA-BPE, the method employed was based on the issuance of invoices by shell companies, which were set up in the names of front men. Each company issued invoices without remitting VAT and without making contributions to EFKA. Once a cycle was completed, the company would close and a new one would open, with the same procedure repeating from the beginning.
Since 2021, the year the network's operations date from, a total of 25 shell companies had been established. Four individuals were used as principal front men: a woman of Bulgarian nationality, a man of Romanian nationality, and two Greeks. The two Greeks have been arrested, whilst the two foreign nationals are being sought. Accountants and business owners are also reportedly implicated in the case.
Parallel investigation into money laundering
Kampouris and his wife were already under investigation by the Financial Crime Authority. According to information, the Authority's inspectors had detected suspicious bank transactions over the past two months, whilst transactions by the couple in Belgium are also being investigated in parallel.
Source: Naftemporiki