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(Luxembourg, 4 December 2024) – The Regional Court of Regensburg (Germany) convicted yesterday an individual of organised VAT fraud and sentenced him to four years of imprisonment, following an investigation led by the European Public Prosecutor’s Office (EPPO) in Munich, concerning a VAT fraud scheme involving wireless earbuds.
Between June 2021 and March 2023, the defendant acted as one of the ringleaders of an organised crime group behind a VAT fraud scheme spanning six EU Member States, namely Czechia, Estonia, Germany, Lithuania, Slovakia and the Netherlands.
The investigation, supported by the Chemnitz-Süd Tax Investigation Office (Steuerfahndung Chemnitz-Süd), revealed that the fraud was orchestrated through a chain of companies set up to evade VAT obligations, leading to combined VAT loss of over €6 million.
In addition to the prison sentence, the court also ordered the recovery of €960 000.
Previous investigative measures, carried out in cooperation with national authorities, led to the seizure of assets worth €21 500, including electronic devices, a luxury watch, and financial records.
The defendant has one week to lodge an appeal; otherwise, the decision will become final.
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.