Key Figure in EU Farm Subsidy Scandal Detained
The alleged leader of a sophisticated criminal network, responsible for diverting an estimated nearly 20 million euros in European Union farm subsidies, has been placed in pre-trial detention in Greece. The 38-year-old man was jailed on October 27, 2025, following a lengthy hearing before a European prosecutor, bringing the total number of individuals in prison in connection with this investigation to ten.
This significant development follows a broader operation on October 22, 2025, where 37 suspects were arrested across Greece. The arrests were a result of an investigation led by the European Public Prosecutor's Office (EPPO) in Athens, in cooperation with the Hellenic Police.
Elaborate Fraud Scheme Uncovered
The criminal group is accused of orchestrating a 'massive and systematic' fraud and money laundering scheme that has been active since at least 2018. The network allegedly exploited procedural gaps in the submission of Single Aid Applications under the EU's Common Agricultural Policy (CAP). This involved using falsified or misleading documents to claim agricultural subsidies from the Hellenic Payment and Control Agency for Guidance and Guarantee Community Aid (OPEKEPE), the state agency responsible for managing EU agricultural subsidies in Greece.
Investigators revealed that the suspects fraudulently declared agricultural land and pastures that either did not belong to them or did not meet eligibility criteria. They also allegedly inflated livestock numbers to increase their subsidy entitlements. To conceal the illicit origin of the proceeds, the network reportedly issued fictitious invoices, routed funds through multiple bank accounts, and mixed them with legitimate income. Part of the misappropriated money was allegedly spent on luxury goods, travel, and vehicles.
Widespread Impact and Political Ramifications
The investigation identified 324 individuals as subsidy recipients, with 42 believed to be current members of the organized criminal group. Many of these individuals reportedly had no actual connection to farming, suggesting their participation solely facilitated the fraud. The core leadership of the organization reportedly included the alleged leader, his father, his ex-wife, and an employee of a declaration reception center on the island of Crete.
The scandal has drawn significant attention and placed pressure on Prime Minister Kyriakos Mitsotakis, particularly given his family's long-standing political influence in Crete, where a substantial portion of the fraudulent subsidies allegedly originated. Mitsotakis has publicly stated his commitment to pursuing those responsible and reclaiming the misappropriated funds. The police action followed an October 13, 2025, raid by the European Union's anti-fraud agency, OLAF, on the offices of OPEKEPE. Examples of the fraudulent claims include 'pastures' declared in archaeological sites, 'olive trees' in a military airport, and 'banana plantations' on Mount Olympus.
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