“A serious danger to road safety in Europe.” EPPO devours a complex criminal scheme with branches in 18 countries, including Romania
The European Prosecutor's Office (EPPO) announced on Thursday that 200 searches were carried out in 10 countries, during an investigation into an organized criminal group that imported damaged cars and put them for sale after superficial repairs, circumventing customs duties and VAT. Prosecutors warn in the statement that the criminal scheme was also a serious danger to the safety of roads in Europe.
The 200 searches were carried out in an action coordinated by EPPO structures in Berlin, Germany, and Vilnius, Lithuania.
The nickname investigation “Nimmersatt” (“Ansiable”, in German) extends from the US to Russia, with connections in Canada, Hungary, Ireland and the United Kingdom, as well as in 11 EU countries in the EPPO area, including Romania.
10 people arrested in the file
The authorities carried out investigative measures, Wednesday and Thursday, in Bulgaria, Estonia, Germany, Hungary, Latvia, Lithuania, the Netherlands, Portugal, Romania and Spain. Within the file were arrested 10 suspects, including a suspected Lithuanian citizen that would be one of the leaders of the criminal organization.
In addition, 18 other suspects – all Lithuanian citizens – were detained for interrogators. According to EPPO, Russian nationality is investigated.
In the center of the investigation is a vast criminal network that introduced severely damaged cars in the EU and then returned to final customers after superficial repairs, circumventing customs duties and VAT. EPPO mentioned in his statement that the cars are serious dangers for the safety of European customers, who, without knowing, buy dangerous vehicles at a high price.
How the criminal scheme worked
Organized criminal groups exploit the American market for cars damaged in accidents, which are often sold at auctions or disassembled for scrap iron. The group targeted by the EPPO investigation bought huge amounts of damaged vehicles from American insurance companies, and then shipped them to the EU. Using a network of fake companies and false invoices to cover the origin of cars, they arrived in the EU with the hidden commercial history.
The cars arrived in different ports, including Antwerp (Belgium), Bremerhaven (Germany), Klaipeda (Lithuania) and Rotterdam (Netherlands). The authors had false invoices and declared a lower value than the one paid for cars so as to evade from the payment of a subsantial part of the customs duties.
Then, the cars were transported by terrestrial to Lithuania, where, according to the evidence, they were superficial to look like us and to pass the necessary technical certification procedures. When they were sold to final customers in Germany or other countries, they were described as never having any accident or being completely repaired, even when they had hidden damages-including missing airbags or other security issues. Less valuable vehicles were sold on Eastern Europe markets.
According to the investigation, the Lithuanian structure of the organized crime group, established in 2020 and led by a Lithuanian citizen arrested during these investigations, used companies from Bulgaria, Estonia, Hungary, Latuia, Lithuania and Romania to fraudulently hide the true turnover of trade. In Lithuania alone, at least 16,500 cars were sold for a total amount of 144 million euros.
Ramifications in 18 countries
EPPO describes the criminal scheme as extremely complex, with branches in 18 countries.
The damage caused by these criminal activities, which is still being evaluated, is estimated at at least 31 million euros representing VAT and unpaid customs. Fund blocking orders of up to 26.5 million euros were issued. So far, the bank accounts have been blocked and 116 cars worth about 2.3 million euros were confiscated, as well as half a million euros in cash and luxury items. Also, properties, land and shares of a company, worth 5.1 million euros, were confiscated.
