Investigators in Poland and Germany have unearthed a fraud scheme that revolved around the trade of vegetable oil and caused the Polish treasury to lose an estimated €17.8 million (US$21.8 million) in tax.
Poland’s Centralne Biuro Antykorupcyjne (Polish Central Anti-Corruption Bureau) and Germany’s Finanzamt für Fahndung und Strafsachen Berlin (Tax Office for Prosecution and Criminal Matters in Berlin) say they have now dismantled the organised crime group that used trade in vegetable oil to commit international VAT fraud and money laundering.
Investigators have now revealed that in February they raided 45 locations across Germany and Poland resulting in the arrest of twelve suspects.
The alleged ringleader of the network is believed to be among the arrested suspects.
The criminal gang allegedly set up a fraud scheme involving a string of buffer companies and missing traders to evade tax payment.
Through this scam, the missing trader bank accounts did not hold any funds that could have been seized by financial authorities on the suspicion of money laundering.
Pandemic support refused
The organised crime group is also thought to have applied to the Polish Development Fund for a support package in connection with the economic impacts of the coronavirus pandemic.
As a result of the investigation, the criminals did not receive the finance they sought.
Categories: Trade Based Financial crimes News