Criminal organization dismantled in €10 mln ‘carousel fraud’ VAT scam
Greek police have dismantled a criminal organization involved in a sophisticated “carousel fraud” scheme, which involved setting up fake companies to carry out fraudulent transactions and expenses totaling tens of millions of euros.
Since 2019, the group has defrauded the state by avoiding the payment of VAT, according to Greek police. They facilitated interbank transfers to simulate payments for fake transactions, allowing them to evade taxes.
Charges have been filed against the organization’s members for setting up a criminal organization, forgery against the Greek state, and cross-border VAT fraud, with total losses exceeding €10 million.
The group exploited EU legislation governing transactions between member states and VAT exemptions to carry out their carousel fraud scheme. These fraudulent companies operated as “missing traders,” declaring fake transactions to illegally collect VAT or claim refunds.
During the police operation, 21 members of the organization were arrested, including three ringleaders, while 41 additional individuals face similar charges. The investigation is ongoing.
