The Ministry of National Economy and Finance on Syntagma Square, Athens. Photo: George E. Koronaios / Wikimedia Commons (CC BY-SA 4.0)

Greece’s ‘Straw Men’: The Frontmen Behind Tax-Evasion Networks

12 Nov 2026, 07:12 by Daphne Tolis · Greek City Times

Greece has a new buzzword: αχυράνθρωποι (achyranthropoi), literally translated as “straw men”.

Not the kind standing in fields to scare away birds. In Greek financial and legal terminology, the word describes individuals whose names are used to register and manage businesses while the real owners and decision-makers remain hidden in the background. And judging by a series of investigations unveiled by Greek authorities in recent weeks, there appear to be quite a few of them.

The ‘Straw Men’ operation

One of the largest cases was announced on November 7 by Greece’s Independent Authority for Public Revenue (AADE). Codenamed “Straw Men”, the operation uncovered an alleged network involving more than 2,000 businesses, approximately 1,300 frontmen and 700 individuals suspected of being the actual controllers. Investigators identified more than 4,200 tax identification numbers linked to businesses operating across more than 700 locations.

According to the head of AADE, Georgios Pitsilis, the network had accumulated more than €203 million in unpaid taxes and social-security contributions over at least three years. This included €68 million in VAT and income tax and a further €135 million in unpaid contributions to the country’s social-security fund, EFKA.

Speaking to MEGA television, Pitsilis said individuals acting as frontmen were rotated between companies in coordination with those suspected of exercising actual control. The investigation focused primarily on Thessaloniki, Halkidiki and northern Greece, but extended to other parts of the country. AADE used specialised analytical tools to examine businesses with outstanding debts and identify connections between them. The months-long investigation reached its final stage in coordination with prosecutors in Thessaloniki. Eighteen people were arrested, 16 of whom face felony charges, according to Pitsilis. Authorities are also seeking additional suspects.

How the alleged scheme worked

Investigators say the real operators concealed their involvement by placing companies under the names of people who appeared formally as managers or sole shareholders. Some alleged frontmen were reportedly recruited outside hospitals in Athens and Thessaloniki. People facing serious health problems were allegedly offered small payments to lend their names to businesses, despite having no actual role in their operations. One alleged frontman, an actor and model, reportedly told investigators he received between €200 and €700 a month.

The investigation also points to the alleged involvement of three accountants and a lawyer, including through the use of forged authorisations to secure business permits. In a November 9 update, AADE confirmed that two central figures, described as businessmen active in nightlife and hospitality, remained wanted.

A wider series of cases

The operation is part of a wider series of investigations into alleged corporate and tax-evasion networks. On October 30, the Hellenic Police announced a separate case involving 430 interconnected companies, 340 of which were allegedly used in an organised mechanism to evade tax, social-security and other obligations. Fifty-nine people were arrested, while 149 were included in the case file. Authorities estimated the damage to the state at approximately €77 million, with recorded debts exceeding €95.5 million. The purported method involved creating successive companies, using frontmen as official representatives and allowing debts to accumulate. Once a company became burdened with substantial liabilities, another entity could take over its commercial activity while the actual controllers allegedly remained the same. The businesses involved reportedly operated across sectors including nightlife, restaurants, beach bars, hotels, travel agencies, bakeries and pastry shops. Authorities also identified financial links with Bulgaria, Ireland and Denmark.

An earlier investigation, announced on October 6, involved 29 companies operating in sectors including catering, nightlife, advertising and clothing. Eleven people were arrested, among them two alleged leaders. Police said the organisation had been active since 2013 and used fictitious companies established in the names of frontmen, some selected because of their poor financial circumstances. The estimated damage to the Greek state was €5.35 million.

The Pizza Fan case

A separate investigation involving the Pizza Fan restaurant chain uncovered a different suspected mechanism. On October 23, the Hellenic Police’s Directorate for Combating Organised Crime announced the dismantling of an alleged criminal organisation linked to the chain. Twenty-three people were arrested, while a further 109 identified individuals were included in the case file. According to police, specially configured ordering and receipt-issuing software allowed selected transactions at participating franchise outlets to be completed without issuing the legally required receipts. A function labelled «κέρασμα» (“treat”) is said to have enabled orders to be prepared and delivered without generating a fiscal receipt, while the transactions remained visible in the central system. Police estimated that the mechanism had concealed more than €150 million in taxable revenue and caused losses to the state exceeding €35 million.

The probe developed further on November 9, when Greece’s Anti-Money Laundering Authority issued a nine-page order detailing allegations of revenue concealment and money laundering. The investigation concerns nine individuals and two companies, including the Greek operating company and a foreign-registered entity. An examination of the Greek company’s bank accounts identified cash deposits totalling €1,287,155 between January 2025 and October 20, 2026. The authority estimated the suspected criminal proceeds at a minimum of €35 million. The order also refers to purportedly false declarations concerning employee numbers, intended to avoid social-security contributions.

The investigation has also affected the chain’s operations. Following the temporary freezing of bank accounts, accounts were partially released to cover wages, suppliers and other operating costs. Pizza Fan began restoring activity across most of its outlets, with orders scheduled to resume on November 11. Labour Minister Niki Kerameus separately said that 165 inspections had been carried out across the network over the previous two years, resulting in fines exceeding €730,000 for labour-related violations. These penalties relate to a separate inspection process, not necessarily the conduct under criminal investigation.

Recurring vulnerabilities

The cases are separate and the allegations have yet to be determined by the court. But they expose recurring vulnerabilities in the system that can be exploited to obscure real ownership and conceal revenue. While upgraded digital auditing and data analytics now give authorities far greater ability to trace who is actually behind a business, these investigations underscore the ongoing challenge of preventing such schemes and recovering funds owed to the state.

Like a scarecrow built to resemble a human figure in plain sight, a corporate frontman provides a visible veneer of accountability. A name and a signature appear on official filings, creating the illusion of a legitimate enterprise while the true beneficiaries operate out of sight.

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