the combat Authority Money Laundering, under the chairmanship of Mr. Charalambos Vourliotisissued detailed 4 page layout which describes in detail the activities of the businessman Kostas Piladakis, his companies, as well as seven other natural persons involved in the case. The document, which publishes the protothema.gr it refers to a complex mechanism for managing corporate structures and assets, allegedly used to avoid tax and legal obligations.
According to the Order, it is alleged that the businessman and those involved took advantage of complex company structures with the aim of conceal assets and money laundering. Mr.It is alleged that Piladakis concealed his status as the beneficial owner of the companies INVICTUS and GLAFKA, misleading credit institutions, as well as the Designated Financial Action Company Sunrise II NPL, in order to avoid enforcement measures. Consequently of this practice, as stated in the document, serious financial damage was caused to both credit institutions and State property.
In addition, the inquiry revealed the use of fictitious expenses in the companies THEROS INTERNATIONAL GAMING INC, ELLINIKO KAZINO KERKYRAS SA and VIVERE ENTERTAINMENT SA, allegedly with the aim of reducing or even avoiding the payment of tax obligations. These fake figures created an image of reduced income, which enabled companies to avoid the corresponding tax obligations.
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According to the Order document, the total amount estimated to have been received by those involved in these activities is exceeded 100 million euros. The descriptions in the Order refer to a elegant strategy to hide income and assets, including spreading money into bank accounts, investment products and safe deposit boxes to avoid any possible seizure.
The Order provides for binding of all assets of Mr. Piladaki, as well as the rest of the natural persons involved. Frozen assets include real estate,stocks,chattels,bank accounts and other financial assets. the document emphasizes that no assets are allowed to be sold except on the condition that the proceeds of the sale be deposited in escrow accounts, and banks and financial institutions are required to inform the Authority promptly when new evidence is discovered.
The detailed report of the authority shows that the methods used to avoid the obligations of the businessman and his companies were multi-layered. The reports of the Order laid particular emphasis on the alleged attempt to conceal the true financial situation, and the evidence gathered is considered sufficient to justify the immediate seizure of assets.
What does Kostas Piladakis answer?
The businessman, in a long statement, denies the charges against him and says he is available to the authorities in relation to give explanations. He asserts that exhaustive tax audits have been carried out on his companies and him from time to time, with no illegality emerging.
“I have been informed by publications that I am under control and that my assets have been seized as part of a control by a competent Authority. No one called me to explain the baseless things mentioned in the reports” he says at the beginning of his announcement. He says he has already submitted a request to obtain the relevant documents and to appear before the authorities.
Mr. Piladakis emphasizes that his businesses have paid hundreds of millions of euros in taxes and insurance contributions and that he has suffered financial loss due to delays in VAT refunds from the State. “I personally mortgaged and sold my property to support businesses and avoid layoffs. I do not accept allegations of money laundering or tax evasion. I was, and will always be available to the authorities, confident that the truth will shine,” he concludes in his statement.
The full advertisement Piladaki
«Publications informed me that I am under control and that my assets are frozen in a controlled context by a competent Authority.
no one called me to explain the baseless things mentioned in the publications. I will apply, through my solicitors, to obtain copies and send them to the appropriate authorities.I believe that leaking in such situations does no honor to anyone.
Both myself and my welfare companies have been subjected to exhaustive tax audits from time to time and it has been clearly established that there was not even a shadow of illegality.
I have been in business for over 3 decades. I and my companies have paid hundreds of millions of euros in taxes and insurance contributions to the Greek State. Until 2010 we did not owe a single euro. Casino businesses were in the midst of an unprecedented financial crisis.
We managed to keep the businesses alive. I employed over 400 people. For more than 14 years, the companies employed at least 210 redundant workers. As of this and the heavy taxation, together with the drop in income, the companies owed large sums mainly to the insurance organizations.We made enormous efforts to fulfill the obligations.
I have personally mortgaged or even sold all my property to support businesses and avoid laying off so many people.
I suffered hardship and even loss from the Greek State which did not return the VAT owed to my company for years, which we finally assigned and collected by the State. Even to this day, the State owes me millions of euros, for which I have appealed to the Court and won the first and second appeals. This delay caused incalculable damage to me personally and to my companies.
I do not accept allegations of alleged money laundering or tax evasion being circulated in all news and media channels. Everything was done and is done legally. I understand that the coordinating State does and must carry out checks.
Control and research, however, are not the same as what is being researched. I was,and I will always be available to the authorities for any investigation and any explanation and I am sure that the truth will shine.
Konstantinos Piladakis».
Interview between Time.news Editor and Anti-Money laundering Expert
Editor: Welcome to Time.news! Today, we have an illuminating guest, Dr.Maria Petrou,a prominent expert in anti-money laundering (AML) practices. Dr. Petrou,thank you for joining us. Recently, teh Anti-Money Laundering Authority led by Mr. Charalambos Vourliotis released a four-page document outlining serious allegations against businessman Kostas Piladakis. Could you start by summarizing the key points from this document?
Dr. Petrou: Thank you for having me. the document outlines a series of serious allegations against Kostas Piladakis and several other individuals connected to him. These allegations include the use of complex corporate structures to conceal assets and avoid tax obligations. It’s claimed that these actions resulted in serious financial damages to credit institutions and state properties,reportedly involving sums exceeding 100 million euros. Notably, there’s mention of fictitious expenses used by multiple companies to manipulate their financial statements and appear to have reduced income, which contributed to tax evasion.
Editor: That’s quite alarming. The report seems to delineate a multitude of tactics used to perpetuate these alleged activities. What does this say about the sophistication of money laundering methods today?
Dr. Petrou: yes, indeed. The strategies described indicate a high level of sophistication and planning. The use of layered corporate structures is a common tactic in money laundering, as it obscures the true ownership of assets. Piladakis allegedly misled financial institutions regarding his status as the beneficial owner of his companies, which is a classic method employed to dodge regulatory scrutiny. The emphasis on diverting funds into various channels, including bank accounts and safe deposit boxes, reflects a well-conceived strategy to safeguard assets against seizure.
Editor: The measures to freeze Piladakis’s assets underscore the serious approach taken by authorities. How effective do you think these measures are in deterring such financial crimes?
Dr. Petrou: Freezing assets is one of the most potent tools available to authorities. It effectively limits the ability of individuals to utilize their assets during the investigation. The requirement that any sale proceeds be deposited into escrow accounts further ensures that no immediate financial benefit can be gained by the accused. However, the real deterrent comes from the perception of the legal consequences. When high-profile cases such as this one receive media attention, it sends a strong message that financial institutions and governments are serious about tackling money laundering.
Editor: In your opinion, how shoudl regulatory bodies improve their strategies to combat money laundering, considering the evolving nature of these schemes?
Dr.Petrou: Continuous adaptation is essential. Regulatory bodies must not only enhance cooperation between jurisdictions but also invest in advanced technology capable of uncovering hidden networks. Data analytics and machine learning can definitely help flag unusual patterns that traditional methods might miss. Additionally, educating financial institutions about the red flags of money laundering and ensuring rigorous compliance is fundamental. The case of Piladakis highlights the need for a proactive approach in monitoring corporate structures and enforcement actions.
Editor: Before we wrap up,what advice would you give to businesses to ensure they are not inadvertently caught up in similar schemes?
Dr. Petrou: Businesses should ensure transparency in their operations and maintain solid compliance programs. Conducting regular audits and employing due diligence processes when engaging with third parties can help identify potential red flags early. It’s also crucial to foster a culture of compliance within the organization, where employees feel empowered to report suspicious activities without fear of reprisal. vigilance and a commitment to ethical practices are key to avoiding complications associated with money laundering.
Editor: Thank you, Dr. Petrou, for your insightful analysis of this complex and critical issue. It’s clear that understanding and combating money laundering requires persistent efforts and collaboration across various sectors.
Dr. Petrou: Thank you for having me! It’s been a pleasure discussing these important matters with you.