Criminal Organization Used Fake Covid Certificates to Defraud Greek Public – Accountant, €5.7M Scam

The mastermind—an accountant—along with accomplices, 40 companies, 55 properties, and ESPA programs form the pieces of an incredible story involving a criminal network that used fake Covid certificates to defraud the Greek public sector. The damage exceeds €5.7 million, while they attempted to cause another €3.7 million in losses. To legitimize their income, they established a complex interbank channel using 122 bank accounts tied to their corporate network, through which at least 57,253 transactions totaling €10.8 million were made. Arrests began earlier this year during a large-scale operation involving 21 searches across homes, businesses, and safes. Six members of the criminal organization were arrested, with six others being charged. The investigation revealed that since June 2020, the accused had formed a well-structured criminal organization aimed at committing fraud against the Greek state and the European Union. Led by a 54-year-old accountant, who leveraged his expertise to deceive authorities, the group included three relatives of the leader and several ‘straw men.’ They developed a network of 40 companies, creating fictitious rental contracts with exorbitant rents that were unjustified. Exploiting urgent measures for combating the spread of COVID-19, they submitted false declarations to claim these inflated rents, intending to harm the Greek public and gain illegal financial benefits. Among the properties involved were the homes of the accused, including a half-finished apartment falsely declared to have a monthly rent of €74,000. Evidence showed the fictitious nature of the contracts due to unrealistic rent amounts, lack of economic activity, and suspicious patterns in property use. The criminals also illegally accessed other economic grants through ESPA programs by submitting falsified documentation, such as banking records and tax authority documents. Notably, they constructed a villa under the guise of a rental property, which was actually used as a residence for two organization members. They avoided social security contributions by employing individuals under false pretenses, misleading the social security agency. Money laundering efforts saw funds absorbed into the company network and transferred between numerous accounts to obscure their origins before reinvesting them back into legitimate business activities or personal consumption.