EPPO has filed an indictment against five suspects regarding fraud

20/11/2025

The European Public Prosecutor’s Office (EPPO) in Hamburg has filed an indictment against five suspects in connection with a large-scale intra-community VAT fraud scheme. The suspects are accused of establishing or participating in a criminal organisation responsible for more than a hundred cases of aggravated tax fraud between 2019 and 2023. The estimated financial damage to EU and national budgets exceeds €188 million.

According to the investigation, three of the defendants allegedly created a complex carousel fraud network using layers of fictitious companies registered across France, Germany, Hungary and Sweden. While the companies appeared to trade electronic goods, the actual operations were run from an office in Istanbul. One of the other accused allegedly used his pub in Denmark for fake deliveries. The group is also believed to have relied on straw directors and shareholders from Poland and Lithuania, forged documents and fake identities to open bank accounts with the help of a notary.

Two of the suspects are accused of further laundering proceeds through Hawala networks and cryptocurrency transactions. Investigators say the group used unregulated financial channels to transfer funds between Europe, Turkey and regions in the Middle East and North Africa, and also employed fake consulting firms to disguise illicit profits.

If convicted, all defendants could face up to 10 years’ imprisonment.