Nine people were arrested by the National Police, Civil Guard, and Tax Administration in Spain as part of an international operation targeting VAT fraud exceeding 25 million euros. The investigation centered on a scheme involving the sale of mobile phones and other electronic devices across several European countries, with forged invoices used to dodge VAT and to prompt unwarranted refunds from tax authorities.
Across Spain, authorities carried out twenty registrations at various addresses and registered offices located in multiple provinces, including Madrid, Barcelona, Castellón, Valencia, Valladolid, Alicante, Murcia, Málaga, and Pontevedra. In addition to the nine detainees, four more individuals are under investigation in connection with the case.
The operation, named Marengo-Rosso, was led by the European Public Prosecutor’s Office in Spain and was conducted in parallel with actions in the Czech Republic, Hungary, Italy, Luxembourg, Portugal, Poland, Slovakia, and Spain. The core offenses under investigation include criminal organization, tax evasion, and money laundering.
The investigation describes a network that created a complex chain of entities—fictional companies spread across a broad swath of the European Union—taking advantage of cross-border transactions to exploit VAT exemptions that exist within the framework of EU rules. This scheme enabled the organization to move goods through multiple member states while avoiding VAT obligations.
Officials noted that the scam involved the use of forged invoices tied to the sale of electronic devices. These invoices were designed to circumvent tax payments and, in some cases, to secure unwarranted tax refunds from national authorities. The system generated substantial profits for the operation, and the proceeds were reinvested through high-value real estate purchases in countries such as the Czech Republic, Portugal, and Italy, where the alleged ringleader has since been arrested.
The investigation was coordinated by the prosecutor’s office, with support from the Central Operating Unit of the National Police (UCO) and the Central Economic and Financial Crimes Unit (UDEF). Police authorities state that numerous electronic devices used by the conspiracy were seized, along with a large volume of documents detailing the scheme. The operation underscores ongoing European efforts to combat cross-border VAT fraud and to dismantle criminal networks that exploit sophisticated corporate structures to hide illicit gains.