Fraud at e-EFKA: Ten arrested – party leader in focus
Ten arrests by the Economic Crime Prosecution in connection with a network involving 25 ghost companies that caused damage to e-EFKA of €1.5 million.
Network of 25 ghost companies in Alimo – party leader and spouse arrested
The Economic Crime Prosecution has arrested ten people following an extensive investigation into a fraud scheme targeting e-EFKA. According to Dikastiko.gr, the case had been under the scrutiny of the Financial Intelligence Unit (FDLP) for months, which detected suspicious bank transactions in accounts held at a Greek bank.
Among those arrested are a party leader with television presence and his spouse, who are characterised as the central leadership figures of the network. They were arrested together with accountants, businesspeople and two individuals with serious financial problems who were used as "straw men".
Early morning raid in Alimo
The arrests were carried out in the early morning hours with a police operation at a four-storey apartment building on Kanari Street in Alimo, directly on the beach. The flat was rented under the name of the wife of the accused party leader.
The initial indication of the case arose from unusual capital movements in bank accounts, which were deemed worthy of further investigation and opened the way for the overall discovery of the network. The investigators' examination has already crossed Greek borders and is extending to countries in the European Union.
25 ghost companies and damage of €5 million
According to the case file documents, the network had established at least 25 ghost companies in the names of the "straw men". These companies systematically avoided the payment of social security contributions, causing damage to e-EFKA estimated at €1.5 million. In total, taking into account tax evasion as well, the estimated damage amounts to at least five million euros.
The mechanism operated in a specific way: when debts at one company accumulated to dangerous levels, those involved would close it and open a new one, repeating the illegal practice from the beginning. This process was repeated many times, allowing the network to continue operating for an extended period.
Fraudulent invoices and scrutiny of party finances
The investigation also revealed that the network's companies allegedly issued fraudulent invoices to the party of which the arrested individual serves as leader. This detail widens the scope of the investigation and prompts authorities to conduct a detailed examination of the party's finances.
The responsible authorities are simultaneously proceeding with the lifting of telephone secrecy, focusing on conversations between the defendants, as well as money flows through three shops in Attica.
Investigation continues with expansion abroad
Investigations are continuing to identify possible accomplices, examine additional companies, and fully clarify the broader connections of the network. The fact that the investigation has expanded beyond Greece to another European Union member state suggests that part of the money flows were directed abroad.
Source: Dikastiko.gr