Estimated losses of 5 million euros for social security fund IKA and 7.8 million for the wider state finances were caused by the activities of a criminal ring as total of eighteen people indicted are accused of creating dummy companies through which they insured the employees of real companies.
Thus the real employers did not have any obligation to insure their employees. However the dummy companies paid none of the social security dues they had accrued. Through a labyrinthine network of insurance paths, they used five dummy companies to lift the obligation of social security payments for employees of a number of real companies.
The members of the ring were found to have forged thousands of signatures of employees, while they profited from not paying dues and by withholding actual wages from employees. Some of the employees lost their insurance and pension privileges when it was found that they were falsely insured. The employees worked for gyms and cleaning crews.
The accused had set up this scam from 2010 to 2013, under the instructions of a 54 year old accountant, considered by police to be the mastermind of the operation.