European prosecutors charge five in connection with alleged $20 million VAT fraud scheme

European prosecutors have filed charges against five individuals and one company, accusing them of evading over $20 million in VAT on products imported from China, the European Public Prosecutor’s Office declared Monday.

After clearing the goods through customs in Czechia, the defendants allegedly claimed they had been supplied to companies elsewhere in the European Union. Investigators believe the purported buyers were fictitious and the shipments were instead sent to e-commerce logistics centers and sold to consumers across the bloc.

Four defendants and the company are accused of operating as an organized criminal group, while a fifth defendant allegedly acted independently. If convicted, the four alleged group members face prison terms of up to 13 years and four months, while the fifth defendant faces up to eight years.