EPPO Uncovers €38 Million VAT Carousel Fraud in Greece, Seizes Assets and Weapons

Luxembourg, 5 December 2024 – The European Public Prosecutor’s Office (EPPO) has uncovered a major VAT carousel fraud scheme in Greece, leading to the seizure of significant assets and weapons. The fraud, estimated to have caused a loss of €38 million, was part of a broader investigation linked to the Admiral case, which was initiated in 2022.

The operation, conducted in Athens on December 4th, involved extensive searches at multiple locations, including the headquarters of several companies and the residences of individuals connected to the criminal network. Over 60 law enforcement officers from the Greek Organised Crime Division participated in the raids, seizing large quantities of documents, accounting records, digital files, and electronic devices such as mobile phones and tablets. In a further step, authorities also confiscated crypto assets totalling 273,000 USDT, along with 3.5 kg of silver and €14,000 in cash. In one of the residences, 63 firearms and cold weapons were discovered, leading to the arrest of a suspect for gun possession.

The investigation revealed that a Greece-based syndicate had exploited EU VAT rules on cross-border transactions by establishing a complex web of companies in Greece, Romania, Serbia, and other non-EU countries. These companies engaged in the sale of electronic goods within the EU, using shell companies to evade VAT payments. These fraudulent entities then submitted claims for VAT reimbursements from national tax authorities.

Between 2017 and 2024, the fraudulent operation traded approximately €305 million worth of products. The estimated damage to the European Union and Greek national budgets is at least €38 million, with further evidence suggesting the involvement of money laundering activities.

The raids were conducted by the Department for the Protection of Public Property and European Resources within the Greek Police’s Organized Crime Division, with additional support from the Hellenic Forensic Science Division’s Digital Forensics Department. In a coordinated effort, the Hellenic Financial Intelligence Unit issued a freezing order on the bank accounts and properties of 25 individuals and 13 companies linked to the fraud, aiming to recover the stolen funds.

The investigation, which remains ongoing, seeks to fully uncover the scope of the criminal activities.

The EPPO, the EU’s independent public prosecution office, is tasked with investigating, prosecuting, and bringing to justice those involved in crimes against the EU’s financial interests.