(Luxembourg, 1 April 2025) – Two ringleaders of an international criminal group were convicted on Friday, 28 March 2025, at the Regional Court of Dusseldorf (Germany) for a multi-million VAT fraud, following an investigation by the European Public Prosecutor’s Office (EPPO) in Hamburg, code-named Goliath.
They were convicted of criminal association and VAT fraud on a large scale, by means of a 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. The Court established that the damage caused by the illegal activities of the defendants amounted to approximately €26 million.
According to the investigation, the defendants established companies in Germany and other EU Member States, as well as in non-EU countries, in order to trade consumer electronics (mainly AirPods) through a fraudulent chain of missing traders – which would vanish without fulfilling their tax obligations. Other companies in the fraudulent chain would subsequently claim VAT reimbursements from the national tax authorities.
The formal managing director of the organisation, a Danish citizen, was sentenced to five years and two months’ imprisonment. The Court also ordered confiscation of assets up to the amount of approximately €320 000.
The ‘de facto’ manager, a Turkish citizen, was sentenced to five years and nine months’ imprisonment, and the Court ordered the confiscation of up to €211 000.
Against the third accused, a Hungarian citizen, the proceedings were terminated in return for the payment of a monetary fine of €75 000, in accordance to Section 153a of the German Code of Criminal Procedure.
These are the first convictions in investigation Goliath, still subject to appeal. Other suspects continue to be investigated.
All persons concerned are presumed to be innocent until proven guilty in the competent German courts of law.
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.