Bet scam: €300 million in damages: Large raid due to fake mobile phones

A major operation targeting a major phone fraud scheme resulted in the seizure of around 300 million euros in damages, according to the European Public Prosecutor's Office in Luxembourg. The scheme involved the sale of millions of phones online, primarily through used parts, with the proceeds going towards building new phones and reselling them as new items on internet marketplaces across the EU.

The operation, which spanned 19 countries, including Germany, involved the arrest of seven suspects, including the alleged leaders of the organization, in Germany, Austria, and Spain. The investigation also targeted a warehouse in Krefeld, North Rhine-Westphalia, where an estimated 10,000 to 15,000 phones were found.

The scheme reportedly involved the construction of phones using used parts in Hong Kong and the United Arab Emirates, followed by cleaning and repackaging in the Netherlands. These phones were then distributed to storage facilities in Germany, which were sold online across the EU.

The fraudsters reportedly also exploited tax loopholes through front companies in EU countries, resulting in a tax evasion of 30 million euros, with at least 25 million euros in Germany. The companies were only taxed on the profit margin, rather than the full sale price, as they were classified as new goods, despite being resold.

In total, around 1,770 law enforcement officers from various EU countries, including Germany, were involved in the operation. The investigation also looked into smuggling, trademark infringement, and the formation of a criminal organization. The European Public Prosecutor's Office, along with the Customs Investigation Office Essen, the North Rhine-Westphalia State Office for the Fight Against Financial Crime, and the Düsseldorf Police, coordinated the efforts.