(Luxembourg, 12 May 2025) – On Friday, the Central Criminal Court of Lisbon (Portugal) convicted 10 individuals and 13 companies for their role in setting up and operating a fraudulent scheme, dedicated to the sale of electronic goods in the EU market, while evading the payment of VAT. This investigation, code-named Admiral, was first announced in November 2022 and is considered the biggest VAT fraud ever investigated in the EU with an overall damage now estimated at €2.9 billion. The convictions in Portugal mark only the first judicial outcome in this wider and ongoing cross-border investigation.
Three of the convicted persons were identified as the main perpetrators behind the criminal scheme and were found guilty of VAT fraud, money laundering, corruption and forgery of documents. The Court sentenced them to imprisonment for seven years, eight years and seven years and six months, respectively. They were acquitted for the charges of participating in a criminal organisation. The judgement is not final and may be subject to appeal.
Another individual was convicted to five years in prison for recruiting the straw men for the companies used in the VAT fraud scheme, managing their fictitious operations, and subsequently participating in the money laundering of the proceeds.
The remaining six individuals were convicted for their involvement in the money laundering scheme. Five of them – including four company managers and the spouse of one of the main perpetrators – received suspended prison sentences of three years under a conditional regime. One of the convicted is a bank employee, sentenced to four years in prison, also suspended, for money laundering and private sector corruption, after deliberately failing to comply with anti-money laundering regulations in exchange for financial gain.
The legal entities involved, created or used to commit VAT fraud and launder proceeds, were also convicted. Two companies were fined €16.000 each, while the remaining were ordered to be dissolved.
All convicted individuals and entities were jointly sentenced to the confiscation of €80.076.336,75, corresponding to the damage caused in Portugal to the financial interests of the European Union. All frozen and seized assets were confiscated, except for the pension funds of two third parties and €320,318.25, which was found to have a legitimate origin.
More chapters unfold
This was only the first trial under the EPPO’s flagship investigation into the most complex VAT fraud to date. The estimated losses to the EU, and to the national budgets of EU countries affected by the activities under the Admiral investigation could amount to €2.9 billion.
Taking advantage of its decentralised model and central analytical capacity, the EPPO was able to establish links between persons and companies under investigation Admiral, and a criminal syndicate based in the Baltics.
The investigation, code-named Admiral 2.0, revealed that this syndicate was using the same modus operandi, and partly also the same organisation and infrastructure, as the perpetrators investigated under Admiral, to carry out a massive VAT carousel fraud.
The third chapter was uncovered in Greece, with an investigation, code-named Admiral 3.0. Based on the evidence gathered so far, a Greece-based criminal syndicate was using partly the same organisation and infrastructure as the perpetrators investigated under Admiral, to carry out a massive VAT carousel fraud.
The investigation in the other EU Member States is still ongoing and all persons concerned are presumed to be innocent until proven guilty in the competent 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.