Shell firms, ghost workers: 40 arrests in EFKA fraud case
The country’s financial crime police have arrested 40 people, including three alleged ringleaders, in a sweeping fraud operation that cost Greece’s social insurance fund EFKA an estimated €20 million in unpaid contributions.
Investigators say the criminal network created dozens of shell companies – with names like “Spiris Coffee” and “Lolita” – listing fictitious managers and fake employees to avoid paying employer contributions and taxes. One ghost company was registered as employing 322 people despite not physically existing.
The first complaint was filed with police in April 2024 by an insured individual who discovered he was falsely listed as employed by nonexistent firms. Investigators subsequently wiretapped suspects, capturing one allegedly saying: “Are we going to open a shop to make a thousand euros a month?”
Three additional suspects face charges but were not arrested, as they reportedly ceased operations before the investigation began. All defendants face charges of criminal organization, fraud, and forgery.
Kathimerini
