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Cyprus Police took part in a coordinated European investigation into an alleged €15.7 million fraud and unpaid VAT scheme involving online mobile phone sales in Germany.
The operation, led by the European Public Prosecutor’s Office, took place on Wednesday, September 16, as part of a Joint Action Day involving authorities in Austria, Bulgaria, Germany and Cyprus.
Five companies and a home searched in Cyprus
In Cyprus, investigators searched five companies and one residence in Nicosia and Larnaca. Documents and electronic data were collected as evidence, while authorities have begun taking statements from a number of people as the investigation continues.
The case centres on a cross-border trading network involving companies based in Cyprus, Bulgaria and Germany. Investigators believe the network was used to avoid the payment of VAT on mobile phones sold online to customers in Germany.
The suspected fraud and unpaid VAT are currently estimated at €15.7 million.
Arrests and €20.5 million in assets frozen
The coordinated searches across the four countries resulted in three arrests in Bulgaria and one in Germany.
German authorities also froze assets worth approximately €20.5 million, belonging to two suspects and two companies. Steps are being taken to recover further assets connected to the companies involved.
Authorities have so far recovered €3.3 million from one of the companies under investigation.
Cyprus Police and Tax Department involved
The Cyprus operation involved the Crime Combating Department at Police Headquarters, including officers from the European Orders and Requests Execution Office and the Cybercrime Subdivision.
The searches were conducted under the supervision of the European Public Prosecutor’s Office’s European Delegated Prosecutor in Cyprus. Cyprus Police and the Tax Department participated, alongside German investigators who travelled to the island to assist with the coordinated operation.
The investigation remains ongoing.
