EPPO Indicts Two Polish Nationals in €100 Million Electronics VAT Fraud Scheme - Organized Crime and Corruption Reporting Project

The European Public Prosecutor’s Office (EPPO) in Katowice has indicted two Polish nationals alleging that they were part of a cross-border VAT fraud and money laundering scheme involving more than 100 million euros ($113.58 million) in fraudulent invoices. The indictment is the first to stem from "Operation Escape Room," a broader investigation targeting an electronic device trading ring operating across Austria, Belgium, Germany, Latvia, the Netherlands, and Poland.

According to prosecutors, the network used hundreds of shell companies and fake invoices to conceal transactions, evade VAT, and claim illegal tax reimbursements. In addition to the fraudulent invoices in Poland, the scheme caused an estimated 47 million euros ($53.39 million) in unpaid VAT damage in Belgium and 22 million euros ($24.99 million) in the Netherlands. If convicted, the defendants face between seven and a half and 25 years in prison.

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