Pizzeria tax fraud probe: €1.1 million hidden in secret compartment
Police have arrested 21 people in an expanding investigation into alleged large-scale tax evasion involving a well-known pizzeria chain operating around 100 outlets across Greece, with investigators estimating that unpaid value-added tax (VAT) has cost the state approximately €25 million since 2022, according to the Athens-Macedonian News Agency (AMNA).
A major discovery during the investigation was the seizure of approximately €1.1 million in cash from a concealed compartment at the owner’s villa in the northern suburbs of Athens, police sources said.
The hiding place was reportedly located behind a double-brick wall, accessible through a concealed door inside a walk-in closet. Jewellery and luxury vehicles had also been seized during the initial phase of the operation.
Custom software allegedly concealed sales
Investigators suspect that the alleged fraud relied on specialised software developed by a programmer to manipulate sales records and conceal revenue.
According to police sources, the software was used at nine outlets directly owned by the parent company. Authorities are now investigating whether the same system was used at franchised branches across the chain.
The first nine suspects arrested are alleged to form the core of the criminal organisation. They include the business owner, the company’s second-in-command, a software programmer and accountants.
Searches lead to 12 additional arrests
The investigation has since expanded beyond the company’s central management to individual franchise outlets.
Police have conducted inspections at 23 stores so far, including 20 in the Attica region and three in Thessaloniki. The searches resulted in 12 additional arrests, involving branch managers.
Authorities also seized a further €100,000 in cash, bringing the total amount confiscated to approximately €1.2 million.
The 21 arrests reflect the widening scope of the investigation as officers seek to establish how extensively the alleged system operated across the chain.
Investigation began after employee complaint
The Organised Crime Department of the Hellenic Police reportedly launched its investigation around five months ago following a complaint by a former company employee.
Investigators are examining the company’s financial records and the operations of its outlets to determine the extent of the suspected tax evasion and identify those potentially involved.
Senior police officers have indicated that inspections will be extended to all stores operating under the chain’s brand name.
The investigation remains ongoing, with authorities seeking to establish the full scale of the alleged scheme and the roles of the suspects.
Source: (AMNA)
