(Luxembourg, 9 August 2024) – Three alleged leaders of an international criminal group were indicted yesterday before the Regional Court of Düsseldorf (Germany) for VAT fraud worth €93 million, following an investigation by the European Public Prosecutor’s Office (EPPO) in Hamburg, codenamed Goliath. All three were charged with criminal conspiracy and large-scale VAT fraud.
Two of the accused remain in pre-trial detention. One of the suspects was arrested in an action led by the European Public Prosecutor’s Office on 22 November 2023 targeting the international criminal network. Another suspect – a Danish citizen who had fled to Africa to escape detention – was arrested in Nairobi, Kenya, and deported on 5 June 2024.
The defendants are believed to be leaders of a criminal organisation active in the international trade of consumer electronics (mainly AirPods). They are suspected of tax evasion through 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 – with losses estimated for the EU and national budgets at at least €93 million.
According to the investigation, the suspects set up companies in Germany and other EU member states, as well as in third countries, in order to trade the goods via a fraudulent chain of missing traders – who disappeared without fulfilling their tax obligations. Other companies in the fraudulent chain would then claim VAT refunds from the national tax authorities.
If convicted, the defendants face up to 10 years in prison.
The investigation, which was supported by Europol, the German tax authorities and several national police forces, spanned Denmark, France, Germany, Hungary, Lithuania, the Netherlands, Sweden and Switzerland.
Earlier in this investigation, the European Public Prosecutor’s Office seized 1,800 AirPods, as well as cash, two luxury cars, worth a total of €550,000, and a high-end watch, worth €907,000.
All persons concerned are presumed innocent until proven guilty by the competent German courts.
The European Public Prosecutor’s Office (EPPO) is the independent public prosecutor’s office of the European Union. It is responsible for investigating, prosecuting and judging crimes against the EU’s financial interests.
Originally published in The European Times.
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