Four tax identification numbers with combined debts of €1,191,008 to the tax authorities and Greece’s social security agency EFKA have been linked to a prominent nightlife businessman in the investigation into a suspected tax evasion ring involving frontmen in Thessaloniki.

When inspectors from the Independent Authority for Public Revenue’s (AADE) Financial Transactions Inspection Forces entered a nightclub on Nikis Avenue to establish who was responsible for running the venue, the businessman reportedly presented himself as an ordinary employee.

The contradiction

Initially, he allegedly avoided questions about who owned and managed the establishment. During the same conversation, however, he reportedly asked the inspectors, “Don’t you know who I am?” and went on to discuss other well-known restaurants and nightlife venues in Thessaloniki which he claimed to manage.

According to the same sources, investigators believe that he was, in practice, the person running the nightclub.

As part of the wider investigation, AADE inspectors cross-checked the individuals officially registered as company directors or partners against those actually conducting the business operations. The investigation covered more than 700 locations across Thessaloniki, Halkidiki and other areas.

The authority announced that the 4,200 tax identification numbers identified during the investigation had accumulated debts exceeding €203 million. Approximately €68 million related to VAT and income tax, while €135 million concerned unpaid social security contributions.

Ring allegedly recruited frontmen outside hospitals

According to AADE, members of the suspected ring even approached patients with serious health conditions outside hospitals to recruit individuals willing to appear on paper as company directors.

The authority specifically identified the Theageneio Cancer Hospital in Thessaloniki and Agios Savvas Hospital in Athens. Those approached were allegedly offered small payments to allow their names to be used in company records, without having any involvement in the businesses’ actual operations.

Accountant remanded in custody as questioning continues

In the judicial proceedings, seven defendants, including Errikos Petilon, appeared before Thessaloniki’s third special investigating magistrate on Tuesday. A 34-year-old man who is alleged to have been running an accounting office was remanded in custody.

The remaining six defendants, including four businessmen, were released subject to restrictive conditions. Questioning continues on Wednesday, while AADE and the Hellenic Police are still searching for two additional businessmen involved in the nightlife and hospitality sectors.