Investigation ‘Echo’: EPPO arrests five suspected ringleaders in probe into VAT fraud involving wireless earbuds

(Luxembourg, 26 August 2026) – At the request of the European Public Prosecutor’s Office in Munich (Germany), five individuals were arrested today in Czechia, suspected of being the organisers of a criminal VAT fraud scheme involving the sales of wireless earbuds. As part of this investigation, code-named ‘Echo’, assets were also seized in Czechia, Germany and Lithuania.

It is understood that the suspects are the ringleaders of an organised crime group that has been operating a VAT fraud system involving AirPods since at least 2019, causing an estimated damage of €20 million between 2019 and 2023.

The scheme was designed to take advantage of EU rules on cross-border transactions between Member States, which are exempt from value-added tax (VAT), by establishing shell companies to simulate cross-border supply chains. This allowed the perpetrators to claim back VAT without the corresponding VAT being declared or paid in Germany. 

Based on the evidence, the suspects were the managing directors or the actual directors of companies involved in the fictitious supply chains, located in Bulgaria, Czechia, Germany, Hungary, Lithuania and Slovakia. 

In addition to the arrests, real estate was also seized in Czechia. Bank accounts were also frozen in Czechia, Germany and Lithuania.

Earlier in this investigation, eight other suspects had already been convicted, including one main organiser. The investigation against other suspects is still ongoing.

The investigation was supported by national authorities in Germany and Czechia. In Germany, support was provided by the Tax Investigation Unit of the Chemnitz-Süd Tax Office (Steuerfahndung des Finanzamts Chemnitz-Süd), the Tax Investigation Unit of the Würzburg Tax Office (Steuerfahndung des Finanzamts Würzburg), and the Central Office for Combating Money Laundering and Asset Recovery Bavaria (Zentralstelle Geldwäschebekämpfung und Vermögensabschöpfung Bayern – ZGV), at the Munich General Prosecutor’s Office (Generalstaatsanwaltschaft München). In Czechia, by the Police of the Czech Republic – National Centre for Combating Organised Crime (Policie České republiky - Národní centrála proti organizovanému zločinu). 

All persons are presumed 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.