Kampouris and wife before prosecutor over €5 million fraud at social security fund
LAOS party leader Philippos Kampouris and ten other defendants are giving statements over a criminal organisation that defrauded the social security fund through shell companies.
Statements from 11 defendants in case involving shell companies and €5 million damage to state
Eleven defendants were called to give statements before the prosecutor in a case involving a criminal organisation that defrauded e-EFKA (the social security fund) and the state through successive shell companies, according to To Vima. Among the defendants are LAOS party leader Philippos Kampouris and his wife, to whom the indictment assigns a leading role in the criminal organisation.
Philippos Kampouris was transported on Thursday afternoon, under guard, from GADA (police headquarters) to a hospital following his statement that he felt unwell. Alongside the statements, a thorough examination of the financial evidence in the case is proceeding in full.
Four accountants and two businessmen at the centre
A pivotal role in the structure and operation of the mechanism is allegedly held by four accountants, who were also called to give statements to the prosecutor, as well as two businessmen operating in the catering sector. The process also involves individuals who appeared as legitimate representatives of the companies, which were established to replace others that closed whilst leaving unpaid taxes, insurance contributions and other obligations outstanding.
The "Phoenix phenomenon" and 29 companies
The case was uncovered following months of investigation by the prosecuting authorities into the alleged multi-year operation of an organised mechanism. According to the case file, more than 29 companies are involved in the system — nightclubs, advertising businesses and catering establishments.
These companies allegedly "resurrected" with new details and representatives, taking the place of previous businesses that closed whilst leaving debts of up to €80,000 each. This practice forms the core of the indictment and has been characterised by the authorities as the "Phoenix phenomenon".
Damage estimated at €5 million
Direct damage to EFKA is estimated at €1.5 million, whilst the total financial harm to the state amounts to approximately €5 million. Examination of the financial data continues, as the authorities examine evidence related to the operation of the companies and the debts incurred.
The indictment: five felonies
The defendants are called to contest, depending on the case, charges concerning five felonies and one misdemeanour. Specifically, the indictment includes:
- Leading a criminal organisation.
- Membership and formation of a criminal organisation.
- Fraud against a legal entity for an amount exceeding €120,000, on a continuous and joint basis.
- Complicity in fraud against a legal entity for an amount exceeding €120,000.
"We are not talking about fraud — we are talking about debts"
The lawyer for Philippos Kampouris and his wife, Apostolos Lytras, along with Yiannis Glyka, rejected the characterisation of fraud outside the Evelpidon courts. "We are talking about certain debts of companies to insurance bodies, to EFKA, and certain debts to the state," Lytras stated.
According to him, when certain companies closed, their personnel remained — through a bookkeeping error — registered with them as well, resulting in debts to the insurance body being inflated. "The actual amount owed by these companies, in which Mr Kampouris participated in some way, does not exceed €250,000," Lytras argued, clarifying that with surcharges the amount rose to the final figure stated in the case file.
"We are not talking about fraud therefore. We are talking about debts which were created from business activity, which at some point the responsible party must be called either to settle, either through out-of-court settlement or in any case to pay this money," the defence counsel concluded.
The statements of the 11 defendants constitute the next stage of the judicial investigation, whilst examination of the financial evidence concerning the alleged operation of the group continues in parallel.
Source: To Vima