Kövesi's team exposes €300M phone fraud across Europe

The European Public Prosecutor's Office (EPPO), led by Laura Kövesi, has dismantled a vast criminal network through its 'Troy' investigation. This network was responsible for deceiving consumers by selling over one million used phones as new across the European Union, causing considerable financial damage.

The operation, which extended across 19 countries, involved assembling phones from used parts in Hong Kong and the United Arab Emirates. These phones were then transported to the Netherlands for cleaning and packaging before being shipped to warehouses in Germany and sold online to consumers throughout the EU, including Romania.

The fraudulent scheme resulted in damages of €300 million to EU consumers and led to over €30 million in VAT losses for EU member states. The network fraudulently used a VAT margin scheme involving shell companies based in Austria, Bulgaria, Germany, the Netherlands, and Switzerland.

The EPPO conducted searches and arrests in Cologne, aided by the Bulgarian National Investigation Service. The operation mobilized 1,770 officers from police, tax, and customs agencies, leading to over 160 searches across the 19 countries.

Seven suspects were arrested in Austria, Germany, and Spain, including two leaders of the criminal organization. A witness in the United Kingdom also contributed to the case against the network.