Title: “Carton Rouge” Operation: French-Led Financial Fraud Investigation Nets 9 Suspects with European Collaboration

April 26, 2018

Overview

A major financial fraud investigation, codenamed “Carton Rouge,” was launched in 16 European countries on April 11, 2018, spearheaded by a French investigative judge from the Interregional Specialised Jurisdiction of Nancy (JIRS), in collaboration with the French Desk at Eurojust.

Arrests and Bank Account Freezing

The operation led to the arrest of nine suspects in Paris and Marseille, and the freezing of numerous bank accounts and blocking of internet sites throughout Europe. The suspected criminal organization (OCG) is believed to be involved in fraud, bank fraud, embezzlement, money laundering, and participation in a criminal organization.

Eurojust’s Role

In response to a request from the French investigative judge, Eurojust opened a case in February 2018, initially involving two European Member States.
As the investigation progressed, the scope expanded to 16 affected countries, including 15 Member States and one third-party state.
Eurojust facilitated the prompt execution of legal instruments, including European Investigation Orders, and provided assistance on urgent requests for mutual legal assistance.
On the day of action, European national judicial and law enforcement agencies collaborated under Eurojust’s direction to freeze the OCG’s bank accounts across multiple jurisdictions, resulting in a highly successful operation.

Fraud Schemes

Football Club Swindling

During the period between August and November 2017, members of the OCG posed as football agents, contacting 15 French football clubs, and requested the transfer of salaries to fraudulent bank accounts, citing erroneous player account information. The obtained funds were then wired to accounts in Bulgaria and Malta for money laundering.

Fake Diamonds Scheme

In parallel, a fraud scheme involving fake diamonds was discovered, where the OCG lured investors into putting their capital into non-existent diamonds, promising a 8% return on investment. However, the investors received no benefits from the supposed deals and were advised to transfer their funds into accounts outside French territory.

Bitcoin Scheme

A third criminal scheme utilizing bitcoins instead of diamonds was also discovered, generating an estimated total profit of €2 million through these activities. Approximately 50 victims were identified.

Eurojust and Further Information

For further information on Eurojust, please visit www.eurojust.europa.eu or contact Eurojust’s Corporate Communications Unit at media@eurojust.europa.eu.

For all Eurojust press materials, please see www.eurojust.europa.eu (Press centre)