Alex Trelinski
A SCAM defrauded authorities out of €20 million in VAT on mobile phone sales across Spain.
Proceeds were laundered mainly through real estate purchases.
146 properties have been impounded and over 280 bank accounts used to launder the unpaid tax have been blocked.
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- Police bust luxury car import scam which cheated Spain’s Tax Agency out of €17m in VAT
- Scammers selling imported cars defraud €14 million from tax authorities in Spain’s Valencia
A joint operation between the Guardia Civil and the Tax Agency has led to 15 arrests of people involved in the long-running con since 2019.
The gang set up a business network around Spain with 20 companies that included mobile phone shops which evaded paying VAT.
23 addresses were raided resulting in five arrests in both the Malaga and Valencia areas, two in Madrid, and one each in Barcelona, Cadiz, and Sevilla.
Officers seized 9,000 mobile phones, more than €200,000 in cash, 35,500 US dollars in cryptocurrencies and 75 vehicles.
Phones were imported or bought in bulk from large stores when promotions were being offered.
The gang then set up a complex resales process which meant it was difficult for authorities to trace the items and work out what tax was owed.
Bogus parcels that were marked as containing mobile phones, actually consisted of wood or bottles of water at the same declared weight to confuse investigators.
The phone units were sold as ‘refurbished’ to buyers in Spain and across Europe via online platforms.
The low prices offered allowed them to undercut legitimate competitors
