In 1930, Pangalos was sent to prison for a building scandal. He remained in prison for two years and was released during a period when a number of amnesties were issued by Venizélos. He never regained the popular support he had before the coup, and never again played a role in Greek politics. After Greece fell to the Germans in 1941, Pangalos and other Venizelist officers moved to support the new
collaborationist regime. He also played an important role, albeit from behind the stage, in the establishment of the
Security Battalions, which he hoped to use against both the Communist-dominated
National Liberation Front and against a possible return of King
George II and the
royal government from exile. Ambitious, tough and able, Pangalos was also widely distrusted for his rashness, megalomania and for being generally "half mad". Through Pangalos did not formally take a position with the Security Battalions, but he ensured his followers were given key positions in the Security Battalions. Pangalos was especially close to SS-
Standartenführer Walter Blume, who was regarded as the most extreme and violent of all the SS leaders in Greece. Blume intrigued in the summer of 1944 to have Pangalos appointed prime minister of the puppet Hellenic State to replace
Ioannis Rallis, who was very close to a nervous breakdown by that point. After liberation, Pangalos was arrested and put in Averof prison in Athens waiting trial for collaboration, but was cleared of all charges in September 1945. He unsuccessfully ran for parliament in 1950 and died in
Kifissia two years later. His grandson, also named
Theodoros Pangalos, served as the Deputy Prime Minister of Greece. He was a member of the
PASOK socialist party. == In popular culture ==