A major cross-European operation, launched since Saturday, targeted a criminal organization accused of selling over one million used mobile phones disguised as new products. According to a statement released by the European Public Prosecutor’s Office (EPPO) on Tuesday, the fraud has caused consumers across the EU damages amounting to at least €300 million, in addition to resulting in a VAT loss exceeding €30 million in several member states.
The investigation, known internally under the code name “Troja,” involved 1,770 officials from police, tax, and customs agencies. These personnel carried out over 160 searches across 19 countries, including Germany, Austria, and Spain. Seven suspects have been apprehended, among them the two leaders of the organization.
The inquiry revealed that the operation involved assembling the mobile phones using used components in Hong Kong and the United Arab Emirates. These devices were reportedly shipped as new products to the Netherlands, from where they were transported to Germany and then sold throughout the EU via online marketplaces.
The scheme also involved the fraudulent use of reduced VAT regulations through shell companies located in several EU countries and Switzerland, designed to boost their profits. This specific regulation only applies to items that have already been taxed on resale. The perpetrators circumvented this by selling the phones as brand-new goods, which should have been subject to the full VAT rate.
The investigation was initiated following a report from the European Anti-Fraud Office (OLAF). The EPPO emphasized that, until a court judgment is issued, all individuals involved are considered innocent.
