Yesterday, the European Public Prosecutor’s Office (EPPO) in Munich and Cologne (Germany) moved against a suspected criminal organisation, believed to have orchestrated a massive €195 million VAT fraud through the sale of smartphones, small electronic devices and protective face masks. During yesterday’s transnational action, led by the EPPO under the investigation cluster Midas, more than 180 searches were carried out and 14 people were arrested in 17 countries (Albania, Austria, Croatia, Cyprus, Czechia, Estonia, Germany, Hungary, Italy, Malta, the Netherlands, Poland, Portugal, Slovakia, Slovenia, Sweden and the UK). Over 680 tax and police investigators supported the investigative measures.
During the searches, law enforcement seized vast quantities of smartphones, worth more than €15.3 million, as well as a yacht, worth €3 million, and €1.2 million in cash and cryptocurrency. Several cars were seized, including a Rolls-Royce, a BMW and a Range Rover. Jewellery, luxury watches and 2.5 kg of gold were also found in the suspects’ residences.
At issue is a suspected VAT carousel fraud – a complex criminal scheme that takes advantage of EU rules on cross-border transactions between its Member States, as these are exempt from value added tax (VAT).
