(Luxembourg, 14 July 2026) – The European Public Prosecutor’s Office (EPPO) in Berlin (Germany) has secured the conviction of three defendants by the Regional Court of Berlin in a major investigation into organised VAT fraud involving the trade in luxury vehicles and medical face masks.
On 10 July 2026, the Regional Court convicted the defendants, as members of a criminal organisation, of organised VAT fraud, aiding and abetting VAT fraud, money laundering and commercial forgery of documents. One defendant was also convicted of subsidy fraud relating to the fraudulent acquisition of German COVID-19 support loans through companies linked to the criminal network.
The present proceedings concern members of the second tier of the criminal hierarchy, including the tax adviser of the criminal organisation, after an earlier judgement in June 2024 saw five individuals convicted, including the three leading members. Two of the convicted defendants had fled following investigative measures in the original case. One was arrested in Croatia in July 2025 on the basis of a European Arrest Warrant, while the other later surrendered voluntarily to the authorities.
During the investigation, assets worth approximately €1.5 million were seized in Germany and abroad, including real estate, bank accounts, cash and luxury watches in Croatia, Germany and Spain. The court-imposed prison sentences range from four years and ten months to seven years and four months and are still subject to appeal.
As previously reported, the convictions concern a criminal scheme involving the trade in luxury vehicles and medical face masks that operated between 2019 and 2024 through a network of companies in several countries, including Czechia, Germany and Poland. The members of the criminal organisation allegedly used straw men, shell companies and missing traders to conceal their activities, evade VAT obligations and fraudulently claim VAT refunds on cross-border transactions within the EU.
The tax damage caused by this scheme exceeds €50 million.
The Regional Court also ordered the confiscation of criminal proceeds amounting to more than €9 million from the convicted defendants. In addition, it issued a confiscation order against a German company that benefited from the criminal activities.
The investigation was carried out by several tax investigation offices (Steuerfahndungstellen Berlin und Brandenburg (Potsdam und Cottbus)) and the Berlin State Police.
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.
- Publication date
- 14 July 2026
- Author
- European Public Prosecutor’s Office