'Cyprus Boys': Four Cypriots at centre of €115 million VAT fraud involving iPhones
Four Cypriot businessmen are suspected of leading an international tax evasion network involving €115.5 million through iPhone trading in Sweden and Germany.
European Prosecution pursuing four Cypriots over €115 million VAT fraud involving iPhones
Four Cypriot businessmen, known to European prosecuting authorities as the "Cyprus Boys", are at the centre of an international economic crime case. According to Politis, they are accused of organising a VAT evasion network totalling €115,529,455 through a complex network of iPhone trading.
The case is being investigated by the European Public Prosecutor's Office. The transactions under examination took place mainly during the 2019-2020 period, with the alleged tax fraud extending to Sweden and Germany. Of the total amount, €80,860,171 concerns 33 cases of non-payment of VAT in Sweden, whilst €34,669,284 is connected with corresponding transactions in Germany.
The four subjects of the case
According to case files, the four alleged leaders operated from offices in Cyprus and appear under the nicknames "Andy", "Chris", "Blondie" and "Little George".
"Andy" is alleged to have held the central role in designing the mechanism: he organised the purchase of mobile phones and controlled the financial platform through which funds were channelled. "Chris" is described as his close associate, with active involvement in the distribution of money alleged to have derived from the illegal activities.
"Blondie", also known as "Tall George", is characterised in the case files as the "banker" of the group, and is alleged to have created and controlled the payment platforms P-Exec and Rivalz. "Little George", finally, is alleged to have previously worked at KPMG and was responsible for monitoring accounts, remittances and financial statements.
Networks of companies and invoices
European authorities estimate that those involved had created a network of companies in different countries, through which successive purchases and sales of mobile phones were carried out with the aim of avoiding VAT. The network included German companies, two businesses in Albania and seven companies in the Swedish leg of the transactions.
According to the case files, invoice chains were used to conceal the alleged fraud, including transactions for voice-over-IP services and gift cards — items which investigators believe were not genuine objects of trade. In a period of approximately two and a half months alone, from late July to mid-October 2019, €7.25 million is alleged to have been spent on mobile phone purchases.
Funds were initially concentrated in bank accounts of companies in Sweden and subsequently transferred to Cyprus, through companies and payment platforms alleged to have been under the control of the four. European authorities are also examining potential money laundering offences and participation in a criminal organisation.
Asset seizures in Greece and Germany
On 13 October 2026, European Delegated Prosecutor Chariklia Thano signed an order for the seizure of assets of five persons in Greece. This was preceded, on 12 March 2026, by four decisions by a German court for the seizure of assets of the alleged leaders, referring to the sum of €80,860,171.
Assets seized in Greece include a third-floor apartment of 78 square metres in Glyfada, a storage unit of four square metres in the same building, as well as two vehicles owned by "Andy" — a DS 3 Crossback and an Audi A3 45 TFSIe. The order also extends to bank accounts, investment products, safe-deposit boxes and other assets of those involved located within Greek territory.
The investigation by the European Public Prosecutor's Office continues, with the four Cypriots remaining at the centre of the inquiry into the alleged tax fraud mechanism and the channelling of funds through corporate and financial structures in many European countries.
Source: Politis