Operation 'Insatiable': Major Blow to International Auto Fraud Ring

Luxembourg/Berlin - A massive operation led by the European Public Prosecutor's Office (EPPO) has dismantled a significant international auto fraud network, dubbed 'Insatiable'. This operation has revealed a scheme involving dangerous junk cars, forged invoices, and multi-million euro fraud.

The method employed by the perpetrators involved purchasing damaged vehicles, often total losses, at low prices in the United States. These cars were then shipped to the European Union, where they underwent only superficial repairs in Lithuania before being sold as nearly new vehicles across Europe. Authorities reported that at least 16,500 such cars, valued at approximately EUR144 million, were sold to unsuspecting customers, some of whom paid premium prices for vehicles missing critical safety features like airbags.

In a coordinated effort, over 1,000 investigators carried out searches at 200 locations across 10 countries, including Germany, Lithuania, and Spain. This resulted in the arrest of ten suspects, including the alleged leader of the operation, a Lithuanian national. Investigations are also ongoing against key suspects who hold Russian citizenship.

The investigation uncovered an extremely complex criminal network with ties in 18 countries. The EPPO is focusing its efforts on prominent figures within the organization from Russia and Lithuania, as well as individuals responsible for the importation and transportation of these vehicles, including numerous car dealers.

During the two-day operation, customs officials seized a total of 116 vehicles valued at around EUR2.3 million, along with cash and luxury goods worth an additional EUR500,000. In total, real estate, land, and business shares valued at EUR5.1 million were also confiscated.

These fraudsters utilized a network of shell companies to evade millions in customs duties and VAT, presenting falsified invoices to authorities. The case was initially investigated by tax authorities in Dresden before being transferred to the EPPO in 2023, which specializes in crimes that affect the financial interests of the European Union.

According to the EPPO, the estimated financial damage caused by this fraudulent operation amounts to at least EUR31 million in evaded VAT and customs duties. Investigations are still ongoing as authorities work to unravel the full extent of this criminal enterprise.