Investigation ‘Cheap Ink’: Three more convicted of €58 million VAT fraud involving office supplies

(Luxembourg, 20 December 2024) – In an investigation led by the European Public Prosecutor’s Office (EPPO) in Venice (Italy), three more suspects have been convicted of participation in a criminal organisation selling toner cartridges and office supplies at cheap prices, by systematically evading VAT. Prior to these convictions, four other suspects had also been found guilty in this investigation, code-named ‘Cheap Ink’, which uncovered a massive VAT carousel fraud, with profits estimated at €58 million.

The judges at the Court of Padua sentenced one of the suspects to nine years imprisonment, another one to four years and six months and the third to four years. This is a first court decision, still subject to appeal. The first four convictions have now become final.

The investigation uncovered a complex fraud scheme involving more than 100 suspects and a network of companies located mainly in Italy’s Triveneto region, but also in several other EU countries. The scheme, which used destitute people as ‘straw men’ for dozens of companies, allowed the suspects to import toners for professional printers and stationery into Italy, while systematically evading VAT. This also allowed the group to resell the imported products at extremely advantageous prices, distorting the principles of fair competition on the market.

This case, led by the EPPO since October 2021, included investigative measures conducted in Austria, Czechia, Germany, the Netherlands, Poland, Slovakia and the United Kingdom. The operational model of the EPPO as a single office made it possible to dismantle a complex cross-border criminal network and bring to trial its ringleaders expeditiously, by collecting evidence much more quickly and in a more comprehensive manner than under the previously existing judicial cooperation methods.

Earlier in this investigation, at the request of the EPPO, the Italian Financial Police (Nucleo di Polizia Economico-Finanziaria Bolzano – Guardia di Finanza) seized cash, real estate and luxury assets from 20 companies and 15 suspects, some of whom were subject to restrictive personal liberty measures or preventive measures. Trial is pending for other suspects in this investigation.

The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.

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