Strawmen from Cyprus, Slovakia, and the EU were involved in €30ml VAT fraud and money-laundering schemes.

Eleven persons remain in pre-trial detention today, following dozens of searches conducted on 5 September as part of an investigation led by the European Public Prosecutor’s Office (EPPO) in Athens (Greece).

The investigation targets a criminal organisation suspected of being involved in a €30 million VAT fraud and money-laundering scheme.

The Hellenic Financial Police (Διεύθυνση Οικονομικής Αστυνομίας) carried out dozens of searches, arrested 21 persons and seized.

• Ten luxury watches,
• A high number of mobile phones,
• A handgun, over €130 000 in cash and
• Many documents and external hard drives.

On-scene digital data stored locally and in cloud computing services was examined by the Digital Evidence Examination Department of the Forensic Sciences Division of the Hellenic Police (Tμήμα Εξέτασης Ψηφιακών Πειστηρίων της Διεύθυνσης Εγκληματολογικών Ερευνών της ΕΛ.ΑΣ).

The investigation, which started after a report from the Hellenic Financial Intelligence Unit (Αρχή Καταπολέμησης της Νομιμοποίησης Εσόδων από Εγκληματικές Δραστηριότητες), has revealed to take advantage of EU rules on cross-border transactions between its Members States, as these are exempt from VAT. that the suspects created a complex web of companies:-

• In Greece and
• Other EU Member States (Cyprus and Slovakia),

It is understood

• That they traded small electronic goods through a fraudulent chain of so-called missing traders, shell companies established solely to evade VAT payment.
• Other companies participating in the fraudulent scheme would subsequently claim VAT reimbursements from the national tax authorities.
• In so doing, they are believed to have created estimated losses to the EU and Hellenic budgets of at least €30 million over the last five years.

According to the evidence gathered on 5 September,

• The criminal organisation used many strawmen who factually managed (or are still working) at least 430 companies active in different economic sectors.
• Several fraudulent schemes linked to additional multimillion-euro VAT tax evasion and money laundering will be investigated further.

Investigative measures were carried out in Cyprus and Slovakia, with the support of EPPO offices there, to receive and get access to information related to the companies based there.

After hearing the defendants this week, the investigating judge ordered the pre-trial detention of eleven persons and restrictive measures for ten persons.

All persons concerned are presumed innocent until proven guilty in the competent Greek 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 EU's financial interests.

Source

https://www.eppo.europa.eu/en/media/news/greece-eppo-busts-criminal-organisation-eu30-million-vat-fraud