The dismantling of the network involving 380 companies, 205 straw men, and €43 million in liabilities is not just an isolated case. It highlights an operating model that allows organized schemes to reap large profits from taxes and contributions that are never paid.
In the case uncovered by AADE, 317 of the 380 companies had already accumulated debts of €27 million to the tax office and €16 million to ΕFΚΑ. The most critical element was that as soon as a tax audit began, the companies “disappeared,” and in their place another company appeared with a new tax ID, the same activity, and a new front-man manager. The business continued operating, but the legal entity vanished, leaving behind swollen debts.
The trick using straw men and one-time tax IDs generates large profits on three levels:
First, through the non-remittance of VAT. In sectors such as food service and electronics retail — which dominated this case and even included a well-known fast-food chain — the VAT collected daily is substantial. When it is not passed on to the state, it becomes an immediate cash advantage for the network.
Second, through the non-payment of social security contributions and income tax. The companies operate, employ staff, and create real economic activity, but their obligations pile up under the names of managers with no real financial capacity. When the company “closes,” the claims remain uncollectible.
Third, through the systematic recycling of legal entities. Searches conducted in 11 residences uncovered 110 bank cards, 110 company seals, POS devices, electronic equipment, and €100,000 in cash. These findings point to an organized ability to rapidly replace companies. When one tax ID became burdened with debts, the next was already ready, with a new manager and the same activity.
This practice is not new. According to data from AADE, in 2025 authorities identified 147 companies participating in a fictitious-transactions ring with a total value of €718.1 million, involving €143.5 million in VAT that was never remitted. In that case, the companies acted as issuers or recipients of fake invoices, artificially reducing taxable income.
In another case previously made public by AADE, a fake-invoice ring caused losses exceeding €48 million. There too, the pattern was similar: shell companies, successive legal entities, and front men with no assets.
The common denominator in all these cases is the use of the tax ID as a disposable tool. A business may operate normally, show turnover and transactions, but its obligations remain with legal entities that cease to exist or have no capacity to pay.
In the case of the 380 companies, the recurring pattern of changing tax IDs, shared addresses, and managers is what triggered AADE’s risk-analysis systems. Cross-checks showed that companies with high debts ceased to exist just before or during audits, while the same activity continued under a new legal entity.
At the end of the chain, the debts are certified in the manager’s name. The straw man is left with a blocked tax ID, frozen accounts, and criminal liability, while the real controller of the business has already moved the activity elsewhere. The system relies precisely on this “shield” of asset-less individuals.
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