Money Laundering Scheme Exposed in Lithuania, Three Main Suspects Arrested
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A major operation against a criminal organization (OCG) that offered money laundering services to thousands of criminals across the EU was carried out on February 27. The OCG, which was set up in Lithuania in 2016 by an Italian-based group, laundered millions of euros generated from various illegal activities such as tax evasion, cyber fraud, fake bankruptcy and organized crime including drug trafficking.
Operation Details
The operation involved over 250 judicial representatives and law enforcement officers, resulting in the arrest of 18 persons, including three main suspects. Authorities also froze over EUR 11.5 million in assets and bank accounts. Eurojust and Europol played crucial roles in facilitating and coordinating the international activities.
How the OCG Operated
The OCG used a financial institution to make fictitious financial transactions via a web of enterprises run by strawmen. The institution advertised its alleged consultancy services online and was led by two main suspects who resided in Lithuania and Latvia. Part of the laundered money was injected into the Latvian and Lithuanian economies through the purchase of real estate and luxury vehicles.
Investigations
Investigations began in 2021 by the Public Prosecutor’s Offices of Naples and Lecce in Italy, with their counterparts in Latvia and Lithuania involved via Eurojust in 2022. In 2022, the financial and judicial authorities in Lithuania closed down the electronic payment institution, revoked its banking license, and initiated bankruptcy proceedings for non-compliance with money laundering prevention regulations.
Rapid Reaction and Freeze of Assets
The rapid reaction of Latvian and Lithuanian authorities to reports on suspicious transactions led to the identification and freezing of millions in funds, real estate properties, and luxury vehicles, which can now be confiscated. Eurojust supported the setting up and funding of a joint investigation team between national authorities involved and set up a coordination center to support simultaneous actions.
International Cooperation
The operation also saw Europol supporting the case since January 2022, working closely with national investigators to uncover the magnitude and complexity of the OCG’s activities. During the action day, two Europol experts were deployed to Latvia to support investigative measures, while an analyst was on hand at Europol’s headquarters to handle contributions shared via secure communication channels.
Conclusion
The operations against the OCG are a result of long-term intensive cooperation across Europe between Italy, Latvia, and Lithuania. Eurojust Vice-President and National Member for Lithuania, Margarita Šniutytė- Daugėlienė, acting National Member for Italy, Aldo Ingangi, and National Member for Latvia, Dagmāra Skudra, jointly stated that the collaboration shows the importance of a well-coordinated approach across Europe.
Authorities Involved
The actions in the three countries were carried out at the request of and by the following authorities:
- Public Prosecutor’s Offices of Naples and Lecce
- Guardia di Finanza of Naples and Lecce
- Prosecutor General’s Office
- Rīga Judicial Region Prosecution Office
- 1st Unit of the Economic Crime Enforcement Department of the Central Criminal Police Department of the State Police
- Vilnius Regional Public Prosecutor’s Office
- Vilnius County Police Headquarters