Three pleaded guilty to tax evasion and money laundering worth nearly €6.5 million.

Here’s a concise summary of the latest developments in the EPPO’s “Admiral 2.0” investigation, based on official and reputable sources:

Key Facts

• As part of the “Admiral 2.0” investigation into large-scale organised tax evasion and money laundering.
• Three individuals have pleaded guilty and entered plea agreements with the European Public Prosecutor’s Office (EPPO) in Riga, Latvia,
• The case involves damage to the state budgets of Austria, France, Germany, Italy, and Spain, amounting to €5 million.
• One defendant admitted to laundering over €1.4 million.
• One of the suspects has been in pre-trial detention since November 2024.
• These are the first criminal proceedings before a Latvian court involving multiple EU Member States as victims.
• Revenue authorities from Austria, Germany, and France have applied for victim status and will participate in the court hearing.
• The plea agreements are scheduled for court approval on 26 September 2025. Punishments include one year imprisonment, fines over €1 million, and confiscation of property (cash, luxury watches, cryptocurrency).

The broader “Admiral 2.0” scheme

• The broader “Admiral 2.0” scheme, which involved
• The sale of consumer electronics, is estimated to have caused €297 million in tax losses to the EU and national budgets.
• Over 400 companies are suspected of involvement.
• The criminal network is also believed to have laundered proceeds from drug trafficking, cybercrime, and investment fraud.
• The suspected ringleader, referred to the court in June 2025, faces up to 10 years for tax evasion and 12 years for money laundering if convicted

Context

• “Admiral 2.0” is a follow-up to the original “Admiral” investigation, the most significant VAT fraud case ever uncovered in the EU, with estimated damages of €2.9 billion.
• The fraudulent scheme exploited VAT exemptions on intra-EU cross-border transactions, enabling a carousel fraud operation on a massive scale.

Here’s a detailed overview of the original “Admiral” VAT fraud investigation, the largest of its kind ever uncovered in the European Union, and how it led to the follow-up “Admiral 2.0”:

🧭 Operation Admiral: The Original Investigation

• Launched: November 2022 by the European Public Prosecutor’s Office (EPPO).
• Scope: A massive carousel VAT fraud scheme involving the cross-border trade of electronic goods (e.g., smartphones, computer components).
• Estimated Damage: €2.9 billion in losses to the EU and national budgets 

🛠️ Modus Operandi

• Fraudsters created phantom companies across multiple EU Member States (Portugal, Baltics, etc.).
• These shell firms issued fake export invoices and never remitted VAT to tax authorities.
• Goods were circulated among these entities, each claiming fraudulent VAT refunds.
• The scheme exploited EU VAT rules on zero-rated intra-Community supplies and input VAT reimbursement.
• Nominee directors, fictitious invoices, and layered bank transactions were used to obscure audit trails 

⚖️ Legal Outcomes (Portugal, May 2025)

• 23 convictions: 10 individuals and 13 companies.
• Sentences ranged from suspended terms to 8 years in prison.
• €80 million in assets confiscated.
• Companies involved were fined or dissolved 

Admiral 2.0: The Follow-Up Investigation

• Launched: Based on findings from Admiral, targeting a Baltic-based criminal syndicate.
• Estimated Damage: €297 million in VAT losses (so far), pushing total losses above €3 billion 
• Scale: Over 400 companies suspected across 15 EU countries.
• Criminal Links: Evidence of involvement from Russian organised crime, with connections to drug trafficking, cybercrime, and investment fraud.

Similar Modus Operandi

• Reused infrastructure from Admiral: nominee directors, bank accounts, spreadsheets.
• Sold high-value electronics via online marketplaces.
• Collected VAT from customers but vanished without remitting taxes.
• Filed false VAT refund claims, laundering proceeds through offshore accounts 

Enforcement Actions

• 624 law enforcement officers mobilised across 16 EU countries.
• 350 searches, 32 detentions, and seizures of €47.5 million in goods, €5.5 million in bank accounts, and luxury assets 

Broader Implications

• Regulatory Reform Needed: The case exposed vulnerabilities in the EU VAT system, especially around cross-border transactions.
• EPPO’s Role: Demonstrated the effectiveness of EPPO’s decentralised model—national prosecutors supported by central forensic and analytical teams.
• Future Impact: Expected to influence EU tax policy, compliance frameworks, and cross-border enforcement strategies.

References

• Investigation Admiral: First convictions in Portugal for 23 defendants ...https://www.eppo.europa.eu/en/media/news/investigation-admiral-first-convictions-portugal-23-defendants-guilty-massive
• 23 Convicted in €2.9B VAT Fraud as Part of EPPO’s Operation Admiral https://fincrimecentral.com/operation-admiral-23-convicted-eu-vat-fraud/
• Europe's €3 Billion VAT Fraud Now Uncovered as Part of Investigation ...https://fincrimecentral.com/eppo-3bn-vat-fraud-investigation-admiral/
• Investigation Admiral 2.0: Three plead guilty to tax evasion and money ...https://www.eppo.europa.eu/en/media/news/investigation-admiral-20-three-plead-guilty-to-tax-evasion-and-money-laundering-worth
• Latvia to Try Mastermind of €297M EU VAT Fraud Scheme https://www.occrp.org/en/news/latvia-to-try-mastermind-of-eur297m-eu-vat-fraud-scheme
• https://www.112wwft.nl/2025/09/19/investigation-admiral-2-0-three-plead-guilty-to-tax... https://www.112wwft.nl/2025/09/19/investigation-admiral-2-0-three-plead-guilty-to-tax-evasion-and-money-laundering-worth-nearly-e6-5-million/
• https://www.eppo.europa.eu/en/media/news/investigation-admiral-20-three-plead-guilty-to-tax-evasion-and-money-laundering-worth