Members of the Garda National Economic Crime Bureau (GNECB) have arrested a person today in connection with an ongoing investigation into VAT Carousel Fraud. The male, aged in his 40s, was arrested on suspicion of participating in or contributing to the activities of an organised crime organisation contrary to Section 72 of the Criminal Justice Act, 2006. He is currently detained at Mountjoy Garda Station under the provisions of Section 50 of the Criminal Justice Act, 2007 and can be detained for a maximum period of seven days.
This is the fourth person arrested in relation to this ongoing investigation at the GNECB into the activities of a cross-border Organised Criminal Group that is involved in defrauding the Irish State using a VAT carousel fraud and laundering the proceeds of this and other crimes, including theft, deception and company law offences.
The operation is a multi-jurisdictional investigation that is connected with recent operations carried out by the Police Service of Northern Ireland (PSNI).
Background
The Garda National Economic Crime Bureau commenced a multi-agency investigation in September 2016 into a multi-million euro VAT carousel fraud (29 million Euro). Funds were identified moving through bank accounts across a range of financial institutions linked to various companies in Ireland and Northern Ireland, under the control of an organised crime group operating in the border region. Large sums of money were subsequently transferred to bank accounts in a number of foreign jurisdictions.
V.A.T. carousels involve more than one jurisdiction and numerous layers to facilitate the alleged movement of goods which in turn leads to the state being defrauded of VAT. This type of fraud involves supplier companies, V.A.T. registered entities, customer companies and transport companies.
Since the investigation’s inception, numerous production orders have been served on financial institutions and a large volume of documentary evidence has been uplifted.
In September 2017 fifteen properties, both commercial and residential were searched across four provinces, by The Garda National Economic Crime Bureau. A large volume of both digital and documentary evidence was seized.
In May 2019, one person was arrested as part of this investigation in Co. Louth and detained under the provisions of Section 50 of the Criminal Justice Act 2007 for questioning.
In August 2019, a second person was arrested and detained under the provisions of Section 50 of the Criminal Justice Act 2007 for questioning.
In October 2019, Detectives from the Garda National Economic Crime Bureau (GNECB) arrested a suspect in Co. Louth for an offence contrary to Section 72 Criminal Justice Act 2006. The suspect was detained and later released without charge with a file being prepared for the Director of Public Prosecutions.
This investigation is being led by The Garda National Economic Crime Bureau (GNECB), and is supported on both sides of the border by The Criminal Assets Bureau (CAB), the Garda National Drugs and Organised Crime Bureau (GNDOCB), the Revenue Commissioners, the Police Service of Northern Ireland (PSNI), the National Crime Agency (NCA) and Her Majesty’s Revenue and Customs Agency (HMRC).
