Owner Of “Choriatiko” Bakery Chain Arrested In Tax Fraud Probe

A major operation by Greece’s Financial Police, dubbed the “Greek FBI,” was underway on Sunday (October 25) targeting the well-known bakery chain “To Choriatiko” over a large-scale tax fraud case, similar to the recent Pizza Fan case.

According to initial reports, the owner of the chain has been arrested, along with the company’s accountant, as well as employees and executives allegedly linked to the operation of the chain and involved in the fraud.

At the same time, specialized police units are carrying out simultaneous, coordinated raids in several areas, and further arrests are reportedly expected in the coming period.

A Network of 200 Companies

The investigation reportedly began at the start of the year, about nine months ago, and concerns a network of around 200 companies allegedly used for fictitious transactions and tax fraud.

The probe is not limited to the bakeries but covers all of the owner’s business activities. Besides the bakeries, he reportedly owns nightclubs and is involved in businesses along the Athens Riviera.

According to reports, the case file includes charges of forming a criminal organization, fraud against the state, tax evasion, and failure to pay VAT and social security contributions. The losses to the Greek state reportedly exceed 100 million euros.

The “Choriatiko” chain has dozens of stores in Attica and in other parts of the country, such as Volos, both company-owned and franchised.

A Past Conviction

Reports also point to the businessman’s alleged involvement in pimping cases. The owner had previously come to the attention of the authorities in 2008, when police broke up one of the best-organized human trafficking rings in the country.

The alleged mastermind of that ring was identified as the owner of the Cyprus-based offshore company “Desena Limited” and of the company “To Choriatiko Bakery-Pastry Ltd.” The police operation, code-named “White Bread,” uncovered a web of relationships and mechanisms used to launder proceeds from illegal nightlife businesses. It followed Operation “Vitrine” in July 2007, during which 73 people were arrested, including a large number of women working in prostitution.

At the time, evidence emerged that the bakery chain owner was involved, reportedly in a leading role, in a ring that sexually exploited women through paid sexual encounters.

The case concluded in 2015 with the conviction of four defendants, including the bakery chain owner. A three-member Felony Court of Appeal sentenced the businessman to 10 years and six months in prison. All those convicted had their sentences suspended, under restrictive conditions that included a travel ban and an obligation to report regularly to a police station.

According to the charges at the time, the criminal organization, allegedly headed by the businessman, aimed at the financial and sexual exploitation of foreign women from Eastern Europe and the Balkans. Members of the organization recruited the women in their home countries, mainly through a job placement agency, by falsely promising them work abroad as dancers and exploiting their vulnerable economic and social situation.

After providing them with travel documents and tickets, the organization sent the women to Greece, where other members picked them up at Athens airport and housed them in apartments that were either rented or owned by the group. The women were given forged Lithuanian passports and political asylum applications, while their legal documents were withheld. Through violence, threats and the supply of drugs, they were forced into sexual encounters with customers of the “Alcatraz” and “Star” strip clubs the organization operated in Attica, with the group collecting the proceeds.