The Economic Court will continue to examine the criminal case of Kaspars Kazanovskis on August 4, whom the prosecution considers one of the organizers of an international VAT fraud scheme. The investigation is linked to the largest tax fraud case in the history of the European Union.
The Economic Court has scheduled another hearing in the criminal case of Kaspars Kazanovskis for August 4, who was detained as part of the international operation Admiral 2.0. According to the prosecution, he was the leader of an organized group that used a complex international scheme to evade value-added tax and launder criminal proceeds.
Kazanovskis is charged with tax evasion of more than 1.4 million euros and money laundering. If found guilty, he could face up to ten years in prison for tax-related offenses and up to twelve years for the charge of laundering criminal income.
The investigation was initiated by the tax and customs police of the State Revenue Service, but later the materials were transferred to the European Public Prosecutor's Office (EPPO), which is handling the case as part of a large-scale international investigation.
According to the investigation, the fraudulent scheme was linked to the trade of electronics through a network of companies registered in various EU countries.
What is important to know: this is not just a Latvian criminal case. The Admiral operation is considered the largest investigation into VAT fraud in the history of the European Union. The total damage from related episodes is estimated at more than 2.9 billion euros.
The investigation established that through the created network of firms, electronic devices worth more than 1.48 billion euros were sold to end customers in EU countries. At the same time, the VAT paid by buyers was not transferred to the state budgets.
According to law enforcement estimates, the damage related to episodes involving Austria, France, Germany, and Latvia amounted to about 297 million euros.
The scheme, investigators claim, involved more than 400 companies registered in 16 EU countries. The funds obtained were transferred through chains of firms and offshore structures.
During the investigation, real estate, luxury cars, cash, watches, and cryptocurrency, which were allegedly acquired with criminal proceeds, were seized.
During the international operation, law enforcement conducted more than 300 searches in 16 European countries. In the Baltic states, 32 people were detained. In Latvia, more than 200 law enforcement officers participated in the investigative actions.
The investigation has also indicated possible links between the scheme and other forms of organized crime, including cybercrime and investment fraud. Additionally, financial intelligence has identified alleged contacts with Russian criminal networks.
Previously, Kazanovskis was under arrest but was later released on bail of 40,000 euros.
While the court examines the presented evidence, the case remains one of the largest and most high-profile investigations into financial crimes in recent years, both in Latvia and in the European Union.
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