Well-known pizza chain Pizza Fan was boasting that “everything was Greek.” Allegedly everything was Greek including the fraud scheme that cost the state 25 million euros in Value Added Tax.
On Thursday, teams of the Greek Directorate for Combating Organized Crime raided the headquarters of Pizza Fan, an unknown number of its affiliates stores, houses of business owner and CEO, his number two, and of several accountants.
Arrested have been so far a total of nine people.
The raid was successful and nine people have been arrested, including the business owner and founder of the “all-Greek” pizza.
According to police, the tax fraud scheme consisted of the installation of a special software that modified receipts with the result that the daily revenues were not showing in the tax authorities data and no VAT tax was paid to the tax authorities.
The Headquarters of the pizza chain had the full control of the fraud scheme, through a centralized telephone center for orders and distributions in several areas.
Since its founding in 1996, Pizza Fan has managed to establish 100 franchise outlets across the country.
The fraud scheme is believed to have started in 2022, while at least 20 franchise operators participated.
MEGA TV reported that the fraudsters would meet once per week and distribute among themselves the unlawful earned money.
During a search of the owner’s home, police discovered a concealed room behind a piece of furniture containing more than €500,000 in cash. Officers also seized jewelry of considerable value, luxury cars and a large volume of evidence.
Investigators are reportedly expanding their inquiry to employees at approximately 20 outlets directly controlled by the owner.
The owners of another 80 franchised outlets are also expected to face charges, although not for participation in a criminal organization.
According to police, the franchise operators were aware that the illegal software was being used.
The investigation is continuing as authorities seek to establish the full extent of the alleged tax evasion scheme.