OCCRP: EPPO Arrests Suspect in $79M Cross-Border VAT Fraud Probe

• OCCRP says eight suspects were arrested in Belgium, the Netherlands and Poland in October 2025.
• OCCRP notes authorities seized around $4 million in real estate, a car, stock, receivables and bank accounts.

The European Public Prosecutor’s Office arrested a suspect in its 'Escape Room' investigation into a cross-border VAT carousel fraud network spanning six EU countries. The network allegedly used hundreds of shell companies and fictitious invoices to conceal transactions and evade VAT, causing significant losses.

Prosecutors allege the arrested man acted as a broker, improperly claimed VAT refunds, and continued operations through new companies after a 2025 raid. His activities may have caused about $4.6 million in losses, and authorities seized assets worth around $4 million.

• $79 million Estimated losses in the Netherlands and Belgium
• $4 million Value of seized assets

• Review transactions involving electronic devices for links to shell companies named in the 'Escape Room' investigation.
• Screen for VAT refund claims from entities operating in Austria, Belgium, Germany, Latvia, the Netherlands and Poland after October 2025.
• Monitor for new companies established by previously raided networks in the six EU countries.

This case highlights the complexity and scale of cross-border VAT carousel fraud, which can involve hundreds of shell companies and fictitious invoices. The estimated $79 million in losses underscores the financial impact on EU member states and the need for robust transaction monitoring, especially for electronic device trades. Compliance officers must be vigilant for typologies involving rapid company formation and VAT refund claims, particularly following law enforcement actions, to prevent similar schemes from exploiting financial systems.