28 January 2025 , 08:12
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On January 27, the European Public Prosecutor’s Office (EPPO) in Riga (Latvia) has filed an indictment against the suspected ringleader of the criminal syndicate targeted by the Admiral 2.0 investigation.
The investigation unveiled a large-scale VAT fraud scheme involving the trade of popular electronic goods and creating an estimated VAT loss of €297 million. The indictment takes place only two months after the arrest of the defendant, a record time for such a complex investigation.
The EPPO reported on 28 November 2024 about a criminal syndicate that was using the same modus operandi, and partly also the same organisation and infrastructure, as the perpetrators investigated under Admiral, to carry out a massive VAT carousel fraud – a complex criminal scheme that takes advantage of EU rules on cross-border transactions between its Member States, as these are exempt from value-added tax. Searches, arrests and seizures took place across 16 countries.
Today, the suspected leader of this syndicate is indicted for large-scale tax evasion and money laundering. He had remained in pre-trial detention since his arrest on 28 November 2024. If found guilty, the defendant could face sentences of up to ten years of imprisonment for tax evasion and 12 years for money laundering.
The investigation continues. The EPPO suspects over 400 companies to be part of this complex fraudulent scheme, which is also believed to have been used for laundering proceeds stemming from drug trafficking, different types of cybercrime, and investment fraud.
All persons concerned are presumed to be innocent until proven guilty in the competent Latvian courts of law.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.