Angelos Giannakopoulos has been arrested alongside dozens of suspects over an alleged 100 million euro tax fraud centered on beach bars in Rhodes.
A total of 59 people have been detained in the operation, which focuses on the Choriatiko bakery chain and an alleged network accused of systematically exploiting seafront concessions. Police said 14 of the arrests took place on Rhodes, where a local businessman and partner who allegedly helped Giannakopoulos manage 35 beach bars and nightclubs was also taken into custody.
Rhodes is one of the most popular island destinations in Greece, attracting millions of international holidaymakers every summer to its coastal resorts. Choriatiko, whose name translates as Village Style, is a prominent bakery and coffee shop chain in Greece known for operating large 24-hour outlets across the Athens metropolitan area and beyond.
Inflated bids for Rhodes beach concessions
At the heart of the police investigation are public competitive auctions held to lease prime spots along the beaches of the island. Greek municipal authorities regularly lease designated sections of the public coastline to private operators, who pay fees for the right to place sunbeds, parasols, and open-air bars on the sand.
According to police findings, the network used phantom companies registered under straw men who acted as paper owners and legal representatives. These front companies submitted bids far above the auction starting prices, pricing out legitimate competitors. In one example cited by investigators, the group submitted an offer of 500,000 euros for a beach concession where bidding began at 50,000 euros.
Winning the auctions allowed the syndicate to secure beach concessions and sign three-year operating agreements with the local municipality. Investigators found that the winning companies paid only the initial installment of the contract price before defaulting on the rest of the agreed payments.
Bankruptcies and unpaid municipal debts
When local authorities tried to collect the remaining lease money, the organizers allegedly pushed the contracting business into bankruptcy. The network then established a brand new company under a fresh name and used it to bid for the next coastal concession, leaving previous commercial debts unpaid while operations continued uninterrupted.
The unpaid bills extended well beyond municipal beach rents. The front companies also accumulated vast unpaid liabilities from national income taxes, value added tax, and mandatory social security contributions, with the individuals officially listed as legal representatives having no financial means to cover the debts.
Investigators noted that municipal authorities in several instances only attempted to collect the outstanding payments at the very end of the three-year contract period, rather than demanding payment as soon as installments were missed.
Cash seizures and hidden bank accounts
The inquiry is linked to a major cash seizure carried out at the end of August, when the Hellenic Coast Guard confiscated 950,000 euros in cash on Rhodes. The money was found in the possession of an associate of the accused businessman and consisted of revenue generated by businesses on the island.
Officers also seized point-of-sale card terminals and 30 grams of cocaine during the same August search. Financial investigators following the money trail subsequently discovered 4 million euros deposited in bank accounts held by two women allegedly connected to Giannakopoulos, along with another 2 million euros located in accounts belonging to corporate entities linked to the network.
Investigation into phantom companies
The Greek investigation began in January 2026, when law enforcement and tax authorities set out to discover who held ultimate control behind hundreds of commercial entities and their registered frontmen. Detectives took action after noticing a pattern of repeated bankruptcies whenever companies were formally required to settle debts with the Greek state.
Investigators worked to map the connections between the different corporate structures and uncover the specific individuals directing operations behind the scenes. The 59 arrested suspects now face charges that include tax evasion, evasion of social security contributions, and money laundering, with Greek authorities estimating total financial damage to the public purse at more than 100 million euros.
