€1.1m cash stashed behind wall as Greek pizza empire rocked by €25m scandal

A secret hiding place behind a wall, bags stuffed with banknotes and a suspected €25 million tax fraud operation have left Greece reeling after police uncovered an alleged multimillion-euro scam involving one of the country’s biggest pizza chains.

Investigators reportedly discovered approximately €1.1 million in cash hidden inside a concealed room at the home of the owner of Pizza Fan, alongside valuable jewellery, as 22 people were arrested in connection with the investigation.

The company, which operates around 100 outlets across Greece, is suspected of avoiding millions of euros in value-added tax (VAT) through an elaborate system allegedly designed to conceal cash transactions.

Cash hidden behind a secret wall

The extraordinary discovery was made during a police search of the owner’s villa in Ekali, an affluent suburb in northern Athens.

Officers reportedly found a concealed entrance hidden behind a walk-in wardrobe, leading to a small secret room containing bags packed with banknotes. The money was reportedly stored in a chest, with handwritten labels indicating the amounts inside individual bags.

Police also seized expensive jewellery and luxury vehicles as part of the investigation.

According to Greek media reports, the alleged tax evasion scheme may have cost the Greek state approximately €25 million in unpaid VAT since 2022.

The pizza trick allegedly hiding millions

Investigators believe specially developed software was used to manipulate the chain’s ordering system and conceal a proportion of its sales.

According to the investigation, customers placing orders were asked whether they intended to pay by cash or card.

When cash was selected, the software allegedly allowed certain transactions to be recorded as complimentary food or ‘treats’, despite customers paying the full price.

Investigators believe approximately one in every four cash-paid pizzas was allegedly recorded in this way, meaning the transactions could escape the normal receipt and VAT reporting process.

The system reportedly operated through a central ordering facility in Halandri, near Athens, which handled orders before passing them to individual restaurants.

Police are also examining allegations that franchise operators were pressured to use the system, with some reportedly threatened with losing their rights to operate under the Pizza Fan brand if they refused.

Investigation spreads across Greece

The investigation began following an anonymous complaint in April, which initially raised concerns about employees allegedly being registered as working fewer hours than they actually did, potentially reducing social security contributions.

Following months of investigations, including surveillance and searches of restaurant premises, authorities arrested people allegedly connected to the operation.

The number of arrests subsequently rose to 22, including the chain’s owner, senior company figures, accountants, a software developer and franchise managers.

Investigators are also examining the involvement of managers at dozens of other branches.

The financial scale of the case is considerable, with the turnover connected to the investigation reportedly exceeding €200 million.

The scandal has also caused major disruption to the business, with reports that Pizza Fan’s nationwide outlets have closed amid the investigation.

Authorities are continuing to examine financial records and the alleged distribution of undeclared profits. Those arrested remain suspects and the allegations will be subject to the legal process.