During the extensive investigations, law enforcement agencies seized large quantities of smartphones valued at over €15.3 million, along with a yacht worth €3 million, €1.2 million in cash, and cryptocurrencies. Several vehicles, including a Rolls-Royce, a BMW, and a Range Rover, were also confiscated. Additionally, luxury goods such as jewelry, expensive watches, and 2.5 kg of gold were found in the suspects' residences. In Albania, five premises were searched, resulting in the seizure of various electronic devices such as phones, laptops, and USB drives, and several individuals were questioned in connection with the criminal activity.
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| German police in action |
According to a statement from the European Public Prosecutor's Office, a total of 14 individuals were arrested, and more than 180 inspections were conducted. The criminal organization, headquartered in Germany, is believed to have orchestrated a massive fraud scheme involving the sale of smartphones, electronic devices, and face masks in various European countries. These activities were carried out through the creation of fictitious invoices aimed at reclaiming VAT and evading tax obligations. The investigation revealed that the suspected organizers had been operating fraudulent schemes since 2017, resulting in substantial financial gains.
Amid the COVID-19 pandemic, they also entered the market by selling face masks purportedly sourced from Hong Kong but actually stored in a warehouse in Germany. In 2020, the same organizers of these VAT fraud schemes are believed to have entered the market for protective face masks.
During the COVID-19 pandemic, face masks were in high demand, and it is reported that the company managed by the suspects purchased them from a disappeared trader and channeled them through several dummy companies to conceal their ultimate destination.
The successful dismantling of this criminal network highlights the importance of international cooperation in combating financial crimes and underscores the determination of law enforcement agencies to hold perpetrators of tax evasion and VAT fraud accountable across borders. Such actions not only protect the integrity of the European Union's financial systems but also safeguard taxpayers' interests and contribute to ensuring a level playing field for businesses operating in the European market.