Lithuania's Financial Crime Investigation Service has revealed a significant fraud scheme related to Value Added Tax (VAT) evasion amounting to 30 million euros in the sale of used cars imported from the United States. The investigation has established suspicions against citizens from Latvia, Lithuania, and the Netherlands, with a primary Lithuanian suspect reported to be the main organizer of the criminal group now in custody. The authorities reported that many of the suspects are Lithuanian nationals who allegedly smuggled severely damaged vehicles into the EU from the U.S. and sold them while avoiding VAT payments.

The investigation began in earnest last April when the leaders and associates of the criminal group were apprehended during a series of raids. Modesta Zdanauskaite, a spokesperson for the Lithuanian Financial Crime Investigation Service, has confirmed that several individuals from Latvia and Lithuania, alongside one from the Netherlands, are implicated in this extensive fraud ring. The organized crime operation reportedly relied on the import of damaged vehicles, which has significant implications for VAT collection and the integrity of trade practices within the EU.

This case highlights not only the ongoing issue of tax fraud in the Baltic region but also the collaborative efforts between the law enforcement agencies of these countries in tackling cross-border criminal activities. The fact that involved citizens from multiple countries are under investigation underscores the need for enhanced cooperation and regulatory measures in vehicle imports to prevent such scams in the future.