Latest Financial Crimes: Fraud, Smear Campaigns, and Tax Evasion in Bulgaria and Romania

Bulgaria and Romania have recently witnessed an surge of financial crimes, involving fraud, tax evasion, money laundering, and organized crime groups from within and outside the countries. Here’s an overview of the recent financial crimes in Bulgaria and Romania:

Bulgarian Financial Crimes

UK Social Security Payment Fraud: An organized crime group from Bulgaria was responsible for submitting over 4,000 false claims for U.K. social security payments. Five suspects were convicted. [UK Social Security Payment Fraud]
Car Theft Ring: Seven members of a Bulgarian car theft ring operating in Spain were arrested. The group is believed to have stolen over 500 cars within a year. [Car Theft Ring]
Tax Fraud: Financial consultants in Ruse, Bulgaria, have been facilitating industrial-scale tax fraud in Romania, involving millions of euros. [Tax Fraud in Romania]
Embezzlement of EU Funds: The European Public Prosecutor’s Office (EPPO) is currently investigating an embezzlement case concerning two EU-financed projects aimed at modernizing Bulgaria’s railway system. [EPPO Investigation]
False Smear Campaign: A smear campaign targeting investigative journalists from Organized Crime and Corruption Reporting Project (OCCRP) and its local partners was launched in Bulgaria and Romania. [False Smear Campaign]

Romanian Financial Crimes

European-wide Criminal Networks: European authorities have arrested 15 suspects involved in two separate criminal groups that traffic women for sexual exploitation. One group operates between the United Kingdom and Bulgaria, while the other functions in Romania and Ireland. [Women Trafficking]
Attacks on Investigative Journalists: Bulgarian and Italian authorities have foiled attacks on investigative journalists who exposed bribery and drug trafficking within the Bulgarian police force. [Attacks on Journalists]

Transnational Financial Crimes

Tax Scam: Bulgarian and Italian authorities have foiled an elaborate tax scam involving cloned companies, which had deprived the Italian budget of at least €69 million (US$72.8 million). [Tax Scam]
Misuse of EU Funds: The European Public Prosecutor’s Office (EPPO) is leading an investigation into possible misuse of EU funds by Bulgarian companies. [Misuse of EU Funds]

Global Financial Crimes

Golden Visas: Members of the European Parliament have called for an end to ‘golden visas’ or citizenship by investment within the member states. [End of Golden Visas]
Online Investment Scam: Bulgarian police took down an online investment scam network, alleging a single member defrauded German and Greek investors of over €10 million (US$11,142,350). [Online Investment Scam]
Bulgarian Oligarchs Sanctions: The United States has sanctioned three Bulgarian oligarchs and 64 related entities for their roles in corruption and for abusing public institutions for profit. [Bulgarian Oligarchs Sanctions]

Ongoing Investigations

Power Stations Emissions: Preliminary analysis from OCCRP indicates that two power stations associated with Bulgarian coal magnate Hristo Kovachki have reported strangely low emissions figures for the past three years. [Low Emissions Figures]

Five suspects were convicted for using either real individuals or stolen identities to defraud the UK social security system.

[Car Theft Ring]

Seven members of a Bulgarian car theft ring operating in Spain were arrested, believed to be responsible for the theft of over 500 cars within a year.

[Tax Fraud in Romania]

Financial consultants in Ruse, Bulgaria, near the border with Romania, have been facilitating industrial-scale tax fraud in Romania, involving millions of euros.

[EPPO Investigation]

The European Public Prosecutor’s Office (EPPO) is currently investigating an embezzlement case concerning two EU-financed projects aimed at modernizing Bulgaria’s railway system.

[False Smear Campaign]

A smear campaign targeting investigative journalists from Organized Crime and Corruption Reporting Project (OCCRP) and its local partners was launched in Bulgaria and Romania, falsely claiming they were involved in a plot to kill Bulgaria’s Chief Prosecutor.

[Women Trafficking]

European authorities have arrested 15 suspects involved in two separate criminal groups that traffic women for sexual exploitation. One group operates between the United Kingdom and Bulgaria, while the other functions in Romania and Ireland.

[Attacks on Journalists]

Bulgarian and Italian authorities have foiled attacks on investigative journalists who exposed bribery and drug trafficking within the Bulgarian police force.

[Tax Scam]

Bulgarian and Italian authorities have foiled an elaborate tax scam involving cloned companies, which had deprived the Italian budget of at least €69 million (US$72.8 million).

[Misuse of EU Funds]

The European Public Prosecutor’s Office (EPPO) is leading an investigation into possible misuse of EU funds by Bulgarian companies.

[End of Golden Visas]

Members of the European Parliament have called for an end to ‘golden visas’ or citizenship by investment within the member states.

[Online Investment Scam]

Bulgarian police took down an online investment scam network, alleging a single member defrauded German and Greek investors of over €10 million (US$11,142,350).

[Bulgarian Oligarchs Sanctions]

The United States has sanctioned three Bulgarian oligarchs and 64 related entities for their roles in corruption and for abusing public institutions for profit.

[Low Emissions Figures]

Preliminary analysis from OCCRP indicates that two power stations associated with Bulgarian coal magnate Hristo Kovachki have reported strangely low emissions figures for the past three years.