The European Public Prosecutor’s Office (EPPO) announced Thursday its largest-ever investigation into VAT fraud, uncovering a criminal syndicate spanning Europe.
The operation, codenamed Admiral 2.0, mobilized over 600 law enforcement officers in raids across 16 countries over two days. Preliminary estimates point to an additional €297 million ($313.93 million) in VAT losses linked to the previously discovered scheme.
“This is a monumental step in our fight against organized financial crime,” the EPPO said in a press release. “The scale of this investigation underscores the sophisticated and multinational nature of these schemes.”
The fraudulent network, primarily based in the Baltics, mirrored techniques exposed in the original Admiral investigation, launched in 2022. That operation revealed €2.9 billion ($3.06 billion) in VAT fraud. The syndicate exploited EU rules on cross-border transactions, selling €1.48 billion ($1.56 billion) worth of electronics through online marketplaces.
Customers paid VAT on purchases, but the companies behind the scheme retained the funds and then disappeared without paying the taxes. Other entities in the chain fraudulently claimed VAT refunds, amplifying the financial losses.
The investigation revealed connections to organized crime, with over 400 companies implicated. These entities were tied to money laundering from activities such as drug trafficking, cybercrime, and investment fraud.
Investigators also found potential Russian involvement, with some criminal groups allegedly providing financial backing in exchange for payments and operational influence.
“This investigation highlights not only financial fraud but the interconnectedness of criminal enterprises,” the EPPO stated.
The transnational raids yielded significant evidence, including €47.5 million ($50.25 million) worth of electronics, luxury vehicles, and €127,000 ($134,239) in cash. Authorities froze 62 bank accounts containing more than €5.5 million ($5.82 million) and detained 32 individuals, three of whom remain in custody.
The operation involved agencies from Austria to Spain, with Latvian officials playing a pivotal role and support from Europol and Eurojust.
