Luxury vehicles worth hundreds of thousands of euros, designer handbags, expensive watches and jewellery were among the items seized during a major police operation targeting an alleged criminal organisation believed to have been led by businessman Angelos Giannakopoulos, now called as “Mr Horiatiko”.

According to the Hellenic Police, the organisation operated a network of 430 interconnected companies, with recorded outstanding debts exceeding €95.5 million.

Investigators are examining the lavish lifestyles of those involved, who allegedly made high-value purchases, invested in property and carried out extensive banking transactions despite accumulating substantial debts to the state and social security authorities.

During police searches of homes, offices and business premises, officers seized designer handbags valued at €155,000 and watches and jewellery with an estimated combined value of €500,000.

Police also confiscated 18 vehicles, including 12 cars and six motorcycles. Financial investigations uncovered purchases of luxury vehicles costing as much as €665,500.

Authorities additionally recovered €528,687.38 in cash and foreign currencies, two cheques worth €70,000 and 15 gold-coloured coins.

A previous search of an accounting office in Rhodes on August 27, 2026, conducted by the Hellenic Coast Guard, had resulted in the seizure of another €949,658.38 and evidence subsequently linked to the case.

How the network of 430 companies operated

According to police, the alleged organisation established and controlled 430 interconnected corporate entities, of which 340 were used as part of a systematic mechanism to avoid tax, social security and other financial obligations.

Although the companies appeared to operate independently, investigators believe they were controlled by the same individuals, who concealed their involvement by appointing nominal directors and legal representatives, commonly known as frontmen.

The corporate network extended across several high-turnover sectors, including nightclubs, restaurants, beach bars, hotels, travel agencies, bakeries, confectionery businesses and adult entertainment venues.

The central element of the alleged scheme was the systematic accumulation of debts to the Greek state, social security organisations and local authorities.

Once a company had accumulated substantial liabilities, it would allegedly be replaced by a newly established entity that continued the same commercial activities under the control of the same individuals.

As a result, debt collection measures were directed against companies that had little or no capacity to repay their obligations, while the actual operators maintained control of the businesses.

The outstanding obligations included unpaid social security contributions, VAT and income tax, payroll withholding taxes, rents owed to local authorities and the Public Properties Company for the use of beaches and coastal areas, and unpaid repayments of government financial assistance.

Two more businessmen have been remanded in custody in the Horiatiko fraud

Two more businessmen have been remanded in custody in the Horiatiko bakery fraud investigation, bringing the total to nine, while the alleged chief accountant has been placed under electronic house arrest.

Two more suspects have been remanded in custody in connection with the alleged fraud network linked to the Horiatiko bakery chain, as questioning of defendants continues.

The decisions were reached by investigating magistrates and a prosecutor, bringing the total number of defendants remanded in custody to nine.

The two individuals are a 53-year-old businessman from Rhodes, who is suspected of having played a key role in the alleged criminal organisation, and another businessman based on the island.

Meanwhile, the man believed to have served as the network’s chief accountant has been placed under house arrest with electronic monitoring.

He is considered one of the central figures in the investigation, although his advanced age and health problems were taken into account in the decision to impose electronic house arrest.

Including the detention orders issued the previous day, nine defendants have now been remanded in custody, while approximately 15 more are still awaiting questioning as the judicial investigation continues.

€1.2 million severance payment and high-value property transactions

Investigators concluded that the failure to meet financial obligations was not the result of genuine financial difficulties but, according to police, a deliberate element of the organisation’s operating model.

Despite the substantial debts, authorities identified extensive withdrawals from corporate bank accounts, transfers between connected businesses, interest-free long-term loans and unusually large severance payments to alleged key members of the organisation.

In one case, investigators discovered a declared severance payment of approximately €1.2 million.

Individuals allegedly received such payments after being formally employed for relatively short periods.

At the same time, members of the network continued expanding their business activities, acquiring property in Greece and abroad, purchasing expensive vehicles and investing in financial products.

According to the investigation, their lifestyles were inconsistent with their declared incomes.

The organisation also allegedly used 32 addresses in Attica as shared or fictitious company headquarters.

Bank accounts in Greece and overseas, payment terminals, intercompany transfers and fictitious transactions were allegedly used to conceal financial flows, beneficial ownership and taxable income.

The hierarchy and the use of frontmen

Police identified a structured hierarchy within the alleged organisation, including a central leader responsible for overall control and business decisions.

The network also allegedly included undisclosed business partners who received between 20% and 25% of financial returns, a central operational group responsible for establishing companies and recruiting nominal directors, and regional support centres in Attica, Rhodes and Mykonos.

These centres provided accounting, tax, insurance and administrative services to the connected businesses.

According to investigators, some nominal directors were recruited from financially vulnerable groups and received payments in exchange for allowing their personal details to be used in company registration and management procedures.

Police also discovered cases in which identification details used to establish companies did not correspond to real individuals.

Debts exceeding €95.5 million and suspected tax evasion

According to information obtained from the Independent Authority for Public Revenue (AADE) and the electronic national social security agency (e-EFKA), the financial damage attributed to the systematic failure to pay obligations amounted to €76,960,295.42, excluding surcharges.

This included €38,177,451.83 in basic overdue liabilities and €38,782,843.59 owed to e-EFKA.

The total recorded enforceable debts of companies for which financial data were available reached €95,557,335.09 as of September 2026.

Sample financial and tax audits of businesses operating in Attica, Mykonos and Rhodes for the years 2020 to 2025 also revealed indications of concealed estimated net profits of €30,519,402.73 and undeclared or hidden taxable transactions worth €43,295,172.62.

Investigators have so far identified 26 cases of suspected felony-level tax evasion.

The tax amounts involved in those cases, together with one additional case for which a criminal complaint has been filed, total €11,757,434.91.

The audits remain ongoing.

Authorities also identified indications of money laundering involving property acquisitions and transfers, luxury vehicle purchases, banking transactions, fictitious loan agreements and transfers between associated companies.

What police seized during the searches

Searches of residences, offices, shops, business facilities and vehicles resulted in the confiscation of significant assets and evidence, including:

• €528,687.38 in cash and foreign currencies, plus two cheques worth €70,000.
• 18 vehicles, including 12 cars and six motorcycles.
• Designer handbags estimated to be worth €155,000.
• Watches and jewellery valued at approximately €500,000.
• 15 gold-coloured coins.
• Company stamps, bank cards, POS terminals and money-counting machines.
• Mobile phones, SIM cards, computers, tablets, hard drives and other digital storage devices.
• Handwritten notes and records containing information about companies, individuals, ownership percentages, receipts, payments and financial transactions.
• Two collapsible metal batons and a metal knuckleduster.
• A small quantity of unprocessed cannabis.

Specialist officers from the Directorate of Criminal Investigations provided technical support for the collection and preservation of digital evidence at the accounting offices.

More than €5.2 million frozen in bank accounts

In addition to the cash and valuables seized, authorities immediately froze €5,208,011.16 in bank accounts linked to the alleged activities.

Greece’s Anti-Money Laundering Authority also ordered the freezing of 130 corporate bank accounts and 213 personal accounts.

Further information is being collected from financial institutions as investigators continue tracing the movement of funds.

The investigation involved close cooperation between the Hellenic Police, AADE, e-EFKA, the Anti-Money Laundering Authority and banking institutions.

International assistance was also provided by US Homeland Security Investigations (HSI), Britain’s HM Revenue & Customs (HMRC) and the non-governmental organisation OUR RESCUE.

Criminal charges and continuing investigation

A criminal case file has been compiled against the accused for participation in a criminal organisation, aggravated fraud against the Greek state and public-law entities, aggravated forgery, tax evasion, failure to pay social security contributions and money laundering, as well as other offences where applicable.

Those arrested were brought before the competent prosecuting authority and referred to investigating magistrates.

The investigation into the full extent of the alleged criminal activity and the financial transactions connected to the network remains ongoing.