European Public Prosecutor's Office: Searches, Arrests in €60M VAT Fraud Probe

(Luxembourg, 16 September 2026) – The European Public Prosecutor’s Office (EPPO) in Cologne (Germany) conducted searches and arrests today in an investigation into suspected large-scale VAT fraud involving a criminal organisation trading goods across several EU Member States. Two suspects were arrested and 20 private residences and business premises searched in North Rhine-Westphalia (Germany) and Belgium. During the searches, large amounts of cash, luxury watches, handbags and vehicles worth approximately €300 000 were seized, as well as a loaded firearm. The frozen bank accounts are still being evaluated. At issue is a suspected large-scale VAT fraud scheme involving missing traders and shell companies. Such schemes exploit the VAT exemption applicable to cross-border transactions between EU Member States and rely on networks of companies used to evade the payment of VAT or facilitate the fraudulent deduction or reimbursement of VAT. The EPPO investigation, code-named Money Cat, currently concerns nine suspects believed to have participated in a criminal organisation operating between Germany, France and Belgium. They were active in the trade of goods ranging from protective masks to packaging materials. One of the main suspects, based in Germany, allegedly declared VAT-exempt cross-border supplies to numerous companies in France and Belgium that are suspected of acting as missing traders. At the same time, the suspect is believed to have unlawfully deducted input tax based on invoices issued by companies that allegedly provided no genuine services or products. Investigators suspect that fictitious invoices worth more than €11 million were issued as part of the scheme. The investigation further indicates that substantial amounts of money were transferred through international banking channels before being converted into cash and redistributed through the criminal network. Financial investigations revealed transfers to accounts in several countries, including China and Türkiye. It is estimated that the tax damage linked to the scheme exceeds €60 million. The exact amount remains subject to ongoing investigations. The searches and arrests were carried out with the support of: The Public Prosecutor’s Office in Duisburg (Staatsanwaltschaft Duisburg) supported the asset recovery with administrative and legal support. All persons concerned are presumed innocent until proven guilty in the competent 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.