Financial Crime World

French Criminal Masterminds Caught in Euro-wide Financial Fraud Net: The Carton Rouge Scandal

Background

Paris, France - In a major breakthrough, a transnational financial fraud case known as ‘Carton Rouge’ was dismantled by French investigators in cooperation with Eurojust, resulting in the arrest of nine suspects and the freezing of millions of euros in assets.

Arrests and Asset Seizures

  • A joint investigation by a French judge from the Interregional Specialised Jurisdiction of Nancy (JIRS) and the French Desk at Eurojust led to the European arrest warrants for the suspects in Paris and Marseille.
  • Simultaneously, bank accounts linked to the scheme were frozen across 16 European countries.

Organized Crime Group (OCG) Activities

The suspected OCG is believed to have committed:

  • Fraud
  • Bank fraud
  • Embezzlement
  • Money laundering
  • Participation in a criminal organization

The fraudulent activities reportedly took place between August 2017 and April 2018.

Football Club Salaries Scam

  • The OCG posed as football agents, contacting 15 different French football clubs.
  • They convinced clubs that football players’ bank accounts had changed.
  • The OCG then intercepted salary transfers allegedly intended for the players.
  • Funds were channelled to Bulgaria and Malta for money laundering.

Fake Diamonds Scheme

  • The OCG engaged in another swindle, convincing victims to invest in a fake diamonds scheme.
  • Victims were lured into investing their money in bank accounts outside of France’s jurisdiction.

Fraudulent Bitcoin Scheme

  • The same OCG was also discovered to have orchestrated a fraudulent scheme using bitcoins instead of diamonds.

Eurojust’s Role

  • In February 2018, Eurojust facilitated an initial case opening at their agency due to the initial involvement of just two European member states.
  • As the investigation progressed, 14 additional European countries and one third state became involved.

Coordination and Assistance

  • Eurojust proved indispensable in the coordination of legal instruments, including the execution of European Investigation Orders.
  • They provided crucial assistance during urgent mutual legal assistance requests.
  • Eurojust’s role in the coordination of national judicial and law enforcement agencies led to the arrests and asset seizures.

Further Information

For more information about Eurojust, please visit their website at www.eurojust.europa.eu or contact their Corporate Communications Unit at media@eurojust.europa.eu.

All Eurojust press releases can be found on their website (Press centre)