- European prosecutors dismantled a major VAT fraud network, resulting in an estimated loss of €297 million.
- The operation, named Operation Admiral 2, involved over 300 searches across 16 countries and led to the arrest of 32 suspects.
- The criminal network, primarily composed of suspects from the Baltic countries, had been operating for several years.
- The fraud scheme, known as “carousel fraud,” exploited VAT-free cross-border transactions within the EU.
- Suspects set up companies in 15 EU member states, selling over €1.48 billion worth of electronic products online.
- Customers paid VAT, but the companies evaded tax obligations and disappeared before paying national tax authorities.
- Other companies in the scheme claimed VAT refunds from the authorities, with profits transferred to offshore accounts.
- More than 400 companies are suspected to be involved, with links to money laundering from illegal activities like drug trafficking and cybercrime.
- The operation resulted in the seizure of electronic items worth over €47.5 million, luxury cars, and €126,965 in cash.
- 62 bank accounts with a total value exceeding €5.5 million were frozen.
- Investigations suggest potential involvement of Russian criminal networks in the operation, with ongoing inquiries expected to yield more details.
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.