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The suspected ringleader of a massive cross-border tax fraud and money laundering scheme that may have defrauded the EU and the national budgets of Austria, France, Germany and Latvia of 297 million euros ($339.3 million) will face trial in Latvia later this month, the European Public Prosecutor’s Office (EPPO) announced Tuesday.
The case stems from Admiral 2.0, an investigation into an organized criminal group accused of orchestrating large-scale VAT evasion through consumer electronics sales.
The defendant, who has been in pre-trial detention since his arrest on Nov. 28, 2024, has been referred to Latvia’s Court of Economic Affairs. The first court hearing is scheduled for June 30. If convicted, he could face up to 10 years in prison for tax evasion and up to 12 years for money laundering.
In a parallel case linked to the same investigation, Latvia’s State Revenue Service Tax and Customs Police has referred three additional suspects to the EPPO. They are accused of evading VAT and laundering money in another 5 million euros ($5.71 million) fraud affecting the EU and the national budgets of Austria, France, Germany, Italy and Spain. One of the suspects has also been in custody since November.
The EPPO said it had received “excellent support” from Latvian authorities and international partners in pursuing the complex case, which may involve more than 400 companies across Europe.
Investigators believe the criminal network may have also laundered proceeds from drug trafficking, cybercrime and investment fraud.
Admiral 2.0 is a follow-up to Admiral, the EPPO’s flagship investigation into what is considered the largest VAT fraud scheme ever uncovered in the EU. First announced in November 2022, Admiral has uncovered estimated damages of 2.9 billion euros ($3.3 billion) and involves criminal activity in more than 30 countries.
The EPPO said the Admiral 2.0 suspects replicated the modus operandi and infrastructure used in the original case to exploit VAT exemptions on intra-EU cross-border transactions—a loophole that enabled a carousel fraud operation on a massive scale.
