Greek police said they arrested 59 people in the “Xoriatiko” case after dismantling an alleged criminal organization involved in fraud against the Greek State and public bodies. The operation ran from Sunday, 25 October 2026, with officers acting across Attica, Rhodes, Mykonos, Ioannina, Agrinio, Zakynthos, Tripoli, Patras and Corinth. Police said the group allegedly operated at least since 2016, building a network of companies in Greece and business and financial links in Bulgaria, Ireland and Denmark. Investigators allege members created and used 430 interconnected corporate entities. Of those, 340 were allegedly used as part of a mechanism to systematically avoid tax, social security and other financial obligations. Authorities said the companies were presented as independent, but were allegedly controlled by the same real persons who hid behind so-called “straw men” as managers and legal representatives. The network allegedly stretched across sectors including night venues, restaurants, beach bars, hotels, travel agencies, bakeries, confectionery businesses and adult entertainment shops. Police also said the alleged scheme relied on repeatedly accumulating debts toward the Greek State, social security bodies and local authorities, then replacing problem companies with new ones controlled by the same people. This allegedly made collection harder because enforcement often targeted “shell” firms. As part of the alleged method, investigators described non-payment of social security contributions, unpaid taxes such as VAT and income tax, failure to pay rents to local authorities and the Hellenic Corporation of Assets and Properties (ET.A.D. Α.Ε.), non-remittance of withheld payroll taxes, and non-return of funds provided as repayable advances. Police said they found extensive evidence that non-payment was allegedly deliberate, not due to financial inability, pointing to withdrawals from company bank accounts and transfers between connected companies, including interest-free long-term loans and high dismissal compensations. One cited example involved a dismissal compensation claim of about 1.2 million euros. The operation involved services from the Organized Crime Division based in Athens, Thessaloniki and Crete, with support from police units, the Special Counter-Terrorism Unit (E.K.A.M.), the Criminalistics Division and the Coast Guard. Makeleio.gr reported the investigation outcome: the 59 arrests followed the formation of a case file that includes 149 accused people.