The European Public Prosecutor's Office has made arrests in Croatia and Italy targeting an organised crime group that carried out large-scale VAT fraud, the Croatian HINA news agency reported. The scheme, which involved trade in electronic devices and hygiene products, caused damage of over 78 million euros, BTA reports.
This is the first case of multi-million euro VAT fraud in Croatia to be uncovered by the European Public Prosecutor's Office. The arrests and searches were carried out jointly by the prosecutor's offices in Zagreb and Venice.
Six suspects were arrested in Croatia, and the prosecutor's office will request the preliminary detention of five of them. The Zagreb District Court issued seizure orders for two properties and eight vehicles worth a total of €650,000.
In Italy, the Naples Court imposed a €33 million seizure order against seven individuals believed to be leaders of the criminal group and 23 companies controlled by them. Real estate, luxury cars, valuable jewelry and cash worth over €1 million have been seized so far.
The European Public Prosecutor's Office in Venice also requested detention orders for seven individuals and a ban on 27 other suspects from engaging in certain business activities.
The investigation is the result of years of cooperation between the Croatian Tax Administration, the police services in Bjelovar-Bilogora and Zagreb, the National Police Service for the Fight against Corruption and Organised Crime, and the Italian Financial Police in Verona. Over 110 police officers searched 28 homes and offices in Croatia (Primorsko-Forestska County, Istria County, Zagreb) and Italy (Aversa, Gorizia, Naples, Nocera Superiore, Padua, Pozzuoli).
The scheme is based on three suspects who, as founders, directors and managers of companies, created and led a criminal organization with members in Croatia and Italy. They organized VAT fraud in the trade of electronic devices and hygiene products in Italy and other EU member states.