(Luxembourg, 5 December 2024) – Yesterday, the European Public Prosecutor’s Office (EPPO) in Athens (Greece) carried out searches in several locations, in a probe into a suspected VAT carousel fraud uncovered during investigation Admiral, with an estimated damage of €38 million.
This investigation was opened after a criminal thread based in Greece was unveiled, following support given in November 2022 in the context of the Admiral investigation. Based on the evidence gathered so far, a Greece-based syndicate was using partly the same organisation and infrastructure as the perpetrators investigated under Admiral, to carry out a massive 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.
According to the investigation, the suspects created a complex web of companies in Greece, Romania and other Member States, as well as in Serbia and other non-EU countries, dedicated to the sale of electronic goods in the EU market. It is understood that the suspects used a fraudulent chain of missing traders – shell companies established for the sole purpose of evading the payment of VAT. Other companies participating in the fraudulent scheme would subsequently claim VAT reimbursements from the national tax authorities.
Based on the evidence, between 2017 and 2024, about €305 million worth of products were traded through the criminal scheme. The estimated damage to the EU and Hellenic budgets is of at least €38 million over the last seven years. The crimes under investigation include money laundering.
The searches were conducted in Athens, at the headquarters of several companies under investigation and at the residences of their managers. Law enforcement seized vast quantities of documents, accounting records and digital documentation, in an effort to secure evidence, as well as electronic devices (mobile phones and tablets). Crypto assets of a total amount of 273 000 USDT were seized, as well as 3.5 kgs of silver and €14 000 in cash. In addition, 63 firearms and cold weapons were found and seized in the house of one of the suspects. The suspect was arrested for the possession of guns.
The searches were conducted by the Department for the Protection of Public Property and European Resources of the Greek Organised Crime Division (Τμήμα Προστασίας Δημόσιας Περιουσίας και Ευρωπαϊκών Πόρων της Διεύθυνσης Αντιμετώπισης Οργανωμένου Εγκλήματος της Ελληνικής Αστυνομίας), with the support of the Digital Forensics Department of the Hellenic Forensic Science Division (Τμήμα Εξέτασης Ψηφιακών Πειστηρίων της ΔΕΕ).
The investigative measures were carried out in full coordination with the Hellenic Financial Intelligence Unit (Αρχή Καταπολέμησης της Νομιμοποίησης Εσόδων από Εγκληματικές Δραστηριότητες), which issued on the same day a freezing order of bank accounts and real estate properties against 25 individuals and 13 companies to compensate the damage to the EU and the national budgets.
The investigation is ongoing, in order to ascertain the extent of the criminal activities.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.