Spanish police, in cooperation with the European Prosecutor’s Office, have dismantled a criminal network involved in the illegal trade of luxury cars from Germany.
During the investigation, VAT fraud amounting to 17 million euros was uncovered. Police conducted 15 raids in Spain (across 13 provinces) and two in Germany, resulting in the arrest of 30 individuals. The leader of the criminal group, who was residing in Germany, was apprehended and is awaiting extradition to Spain. He has 18 warrants for offenses related to drug trafficking and tax crimes, and he operated under a false identity.
During the operation, more than 300,000 euros in cash, jewelry, luxury cars, and real estate worth over 11 million euros were seized. Financial instruments used for tax evasion and money laundering were blocked in Spain, Germany, Portugal, and Lithuania.
The fraudulent scheme involved companies known as “missing traders,” which imported luxury cars into Spain without paying VAT, allowing them to sell the vehicles below market prices.
A key aspect of the scheme was the use of vulnerable individuals as frontmen, who were offered housing in exchange for posing as administrators and partners in the companies involved in the criminal activities. Searches were carried out both at the homes of the ringleaders and at luxury car dealerships associated with the network.
