Searches have been carried out in the French capital and six individuals were questioned as part of an investigation by the by the European Public Prosecutor’s Office (EPPO) into a suspected multi-million VAT fraud scheme.
The investigation concerns a suspected VAT ‘carousel’ fraud – a complex criminal scheme that takes advantage of EU rules on cross-border transactions between its Member States, as these are exempt from value-added tax (VAT), with an estimated damage amounting to around €13 million in evaded VAT. The investigation also concerns money laundering and participation in a criminal organization involving 26 French companies, mainly based in the Ile-de-France region.
According to the investigation, the transnational fraud scheme relied on a network of fly-by-night companies with no genuine economic activity, designed to be difficult to detect. These temporary shell companies allegedly used at least 80 bank and payment accounts to transfer funds amounting to approximately €160 million over a period of less than two years.
The allegations were reported to the EPPO in August 2025 by the French tax administration (Direction générale des Finances publiques – DGFiP – Direction nationale des enquêtes fiscales). On 25 June, six searches were conducted to seize documents and digital evidence, as well as one luxury car and approximately € 60 000 in cash. At the same time, at the order of the EPPO, six individuals suspected of participating in the financial management of the companies under investigation and laundering the proceeds of the fraud were questioned by the investigators.
The investigation is ongoing with the support of the French anti-fraud office (Office national anti-fraude – ONAF).
All persons concerned are presumed innocent until proven guilty in the competent French 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.
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