Newsroom
The Financial Police Directorate has dismantled a criminal organization involved in elaborate VAT fraud schemes, leading to significant financial losses for the state.
As Proto Thema reports, since 2019, the group operated by creating fictitious businesses, primarily in Greece, Cyprus, and Slovakia, to conduct virtual transactions and claim VAT refunds fraudulently. The operation was executed following a month-long investigation overseen by the Greek Office of European Public Prosecutors.
On Thursday, a coordinated police operation, involving the Criminal Investigation Department, Attica Security Directorate, and Directorate of Electronic Crime, resulted in the arrest of 21 individuals, including three alleged leaders. They face charges of forming a criminal organization, forgery, cross-border VAT fraud exceeding €10 million, conspiracy, money laundering, and violations of weapons and drug laws. Additionally, 41 other individuals are implicated.
The Anti-Money Laundering Authority's findings initiated the investigation, which uncovered that the organization had set up a complex network of dummy businesses. These entities were used to perform fictitious transactions, file false VAT returns, and launder illicit proceeds through elaborate schemes including carousel fraud.
The network’s tactics included establishing "front companies" managed by low-income individuals to mask the true operators, conducting false intra-EU transactions to claim VAT refunds, and using encrypted communications and anonymous methods to conceal operations. The group's activities led to a VAT loss of over €26 million, with fictitious transactions exceeding €150 million.
In total, 39 searches were conducted, yielding significant evidence including €139,696 in cash, a luxury car, high-value watches, firearms, and numerous digital storage devices. The Digital Experiments Examination Department played a crucial role in analyzing vast amounts of digital data seized during the operation.
The arrested individuals have been referred to an investigating judge. Authorities encourage the public to report economic crimes and suspicious activities through the hotline 11012 or the government portal.
[Information sourced from Proto Thema]
