VAT fraud of €114 million involving smartphones: five arrests in Cyprus, Germany, Italy
The European Public Prosecutor's Office has dismantled a VAT fraud network worth €114 million through the trade in smartphones. Five arrests and asset seizures across three countries, including Greece.
European Public Prosecutor's Office: five suspects arrested for €114 million tax evasion ring involving mobile phones
Five suspects were arrested on 16 October 2026 following a request by the European Public Prosecutor's Office (EPPO) in Munich, in the context of an investigation into VAT fraud worth €114 million involving the sale of smartphones. According to Newsit.gr, three were arrested in Cyprus, one in Germany and one in Italy.
At the centre of the case is an international network of companies that allegedly traded mobile phones through companies based in Germany, Albania and Sweden, without remitting the VAT they collected. These companies disappeared immediately afterwards, making it difficult to trace the flow of goods and money. The estimated damage to public funds amounts to €80 million in Sweden and €34 million in Germany.
During the operation, a total of 12 searches were carried out at premises of suspects and companies in Cyprus, Greece and Italy. In parallel, bank accounts were frozen and vehicles and real estate were seized in all three countries. The EPPO statement does not clarify which exact assets were seized in Greece, nor does it name those involved.
The Greek operation involved the Subdirectorate of Digital Forensic Investigation and Analysis and the Subdirectorate for Prosecution of Economic Crimes of the Directorate for Combating Organised Crime. The five arrested individuals are considered the founders and controllers of the ring.
The case follows the investigation "Midas", which began in February 2024 with an operation in 17 countries for alleged VAT fraud of up to €195 million in the sector of smartphones, small electronic devices and protective masks. At that time, more than 180 searches had been carried out and 14 people had been arrested.
Source: Newsit.gr