Investigation Fox: Two convicted in Germany in large-scale VAT carousel scheme involving electronics

(Luxembourg, 04 November 2026) – The European Public Prosecutor’s Office (EPPO) in Hamburg (Germany) has secured the conviction of two members of a criminal organisation responsible for a VAT carousel fraud scheme in the trade of electronic products across multiple EU Member States. The Hamburg Regional Court sentenced each of them to a total of seven years in prison. The judgment is final.

The two convicted are a couple from Hong Kong, who lived and worked in Hamburg. They formed a criminal organisation between 2018 and 2024, with the aim of evading VAT for the benefit of companies under their management located in Bulgaria, France, Germany, Hungary, Poland and the Netherlands. They used straw men in various positions in the invoicing chains with the aim of evading VAT in favour of the respective companies and transferred the proceeds to Hong Kong.

A third accused, related to one of the convicted persons, is being prosecuted separately and is wanted under a European arrest warrant. Based on the evidence, he acted as the leader of the criminal group with the couple working under his instructions. The husband coordinated deliveries and accompanied the straw men involved in setting up the companies. Meanwhile, the wife managed the business documents, handled financial transactions, set up the companies abroad and arranged travel for the straw men.

The criminal organisation evaded VAT totalling at least €10.3 million over a period of six years, between 2018 and 2024, in Germany, Poland, Hungary, Bulgaria, France and the Netherlands.

The Hamburg Regional Court had already sentenced the couple to a total prison term of four years and five months each for tax evasion in connection with a VAT carousel scheme in June 2024 investigated by the Hamburg Public Prosecutor’s Office. The couple has been in custody since then. The sentence from that case was incorporated into the new judgment, and a single aggregate sentence was imposed.

The investigation was supported by the Hamburg Tax Investigation Department (Steuerfahndung Hamburg).

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.