EU’s Financial Crimes Investigation Hits Snag: Admiral Scale Probe Unable to Proceed

Luxembourg, December 6, 2023

The European Public Prosecutor’s Office (EPPO) has announced that it is unable to proceed with the first accusation in the Admiral scale investigation, a massive fraud scheme targeting EU value-added tax (VAT).

The Investigation

The EPPO had filed charges against 12 suspects and 15 companies, accusing them of creating and operating a criminal organization that defrauded VAT between 2016 and November 2022. The accused include:

• 10 Portuguese nationals
• 2 French nationals

These individuals allegedly used fake invoices and fraudulent tax declarations to evade paying VAT.

The Scheme’s Impact

The scheme is believed to have affected more than 30 countries, including:

• 16 EU member states
• Could have resulted in losses of over €2.2 billion for the EU and national budgets

Investigation Roadblock

Despite a two-year investigation by the EPPO, which involved cooperation with prosecutors from 16 EU countries, Europol, Eurojust, and police forces from several nations, the case has hit a roadblock.

• The exact reasons for the delay were not disclosed
• Suspects continue to be investigated separately in Portugal and other countries

Background Information

The Admiral scale investigation was launched after a tip-off from an anonymous source and led to the detection of a complex web of companies and individuals involved in the fraud scheme. The investigation resulted in:

• 14 suspects arrested, with 5 still being held in custody

Significance

The case has significant implications for EU financial interests and national budgets, and its outcome will be closely watched by authorities and taxpayers across the continent.

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