Greek authorities have participated in a cross-border investigation into an alleged €114 million VAT fraud involving smartphone sales, the European Public Prosecutor’s Office (EPPO) has announced.

In addition to Greece, the investigation, codenamed Midas, involved searches and seizures in Cyprus, Germany and Italy, where five arrests were made.

At the request of the EPPO office in Munich, three suspects were arrested in Cyprus, one in Germany and one in Italy.

The suspected criminal organization is accused of operating a VAT carousel scheme that exploited EU rules exempting cross-border transactions between member states from value-added tax. Smartphones were allegedly sold through companies and so-called missing traders based in Germany, Albania and Sweden.

Investigators estimate that the scheme caused tax losses of €80 million in Sweden and €34 million in Germany.

With support from authorities in Greece, Cyprus, Germany and Italy, investigators carried out 12 searches at properties belonging to suspects and companies under investigation. Assets worth up to €80,000 were frozen, while bank accounts, cars and real estate were seized in Greece, Cyprus, and Italy.

The arrested suspects are believed to have established and controlled the alleged fraud scheme. All those concerned are presumed innocent until proven guilty in the competent German courts.

The EPPO is responsible for investigating and prosecuting crimes affecting the European Union’s financial interests.

Source: Ekathimerini.com