site.btaLarge-scale Operation by European Prosecution in 10 EU Member States, Including Bulgaria, against Import of Salvage Cars from US

A large-scale operation, led by the European Public Prosecutor’s Office (EPPO) in ten countries in the EU, including Bulgaria, probed into a criminal organisation importing salvage cars from the United States and reselling them after cosmetic repair, thus evading custom duties and VAT, the press office of the EPPO announced on April 16. The criminal scheme also poses serious dangers for road safety in Europe.

In the investigation, code-named ‘Nimmersatt’ (‘Insatiable’ in German), some 1,000 police and tax and customs officers carried out 200 searches. The extent of the investigation spread from the US to Russia, with links to Canada and the UK, as well as 11 EU countries.

Investigative measures were conducted in Bulgaria, Estonia, Germany, Hungary, Latvia, Lithuania, the Netherlands, Portugal, Romania and Spain. At the moment, ten suspects, including one of the suspected ringleaders of the criminal scheme, a Lithuanian citizen, were arrested. In addition, 18 Lithuanian citizens were detained for questioning. Key suspects under investigation have Russian citizenship.   

The investigation determined that the Lithuanian cell of the organized criminal group was established in 2023 and led by a Lithuanian national. The cell used companies in Bulgaria, Estonia, Hungary, Latvia, Lithuania, the Netherlands and Romania to fraudulently conceal the true turnover of the trade in salvage cars. From Lithuania alone, at least 16,500 cars were sold, for an amount of EUR 144 million. 

The damage caused by these criminal activities is still under assessment. At the moment, it is estimated at EUR 31 million in unpaid VAT and custom duties.

Orders for the freezing of up to EUR 26.5 million have been granted. For the time being, bank accounts have been frozen, and 116 cars worth approximately €2.3 million seized, as well as half a million euros in cash and luxury items. Properties, plots of land and company shares, worth EUR 5.1 million, have been seized. 

The criminal group bought huge quantities of wrecked cars from US insurance companies at auctions and then shipped them to the EU. The cars were delivered at different ports, including Antwerp in Belgium, Bremerhaven in Germany, Klaipeda in Lithuania and Rotterdam in the Netherlands. In order to evade a substantial part of the customs duties, the perpetrators presented false invoices to the custom authorities, declaring a much lower value than what they paid for the vehicles. Then the cars were transported to Lithuania, to be repaired in auto repair shops. The repairs, however, were only superficial, in order to make the cars appear as new and pass the required technical certification procedures. Finally, the cars were sold to customers in Germany and in other EU countries.

The final clients were assured the cars had never had an accident or been fully repaired, even when they had hidden damage, including missing airbags or other serious security issues. Less valuable vehicles were sold to Eastern European markets. 

The investigation, involving 16 European delegated prosecutors, was originally initiated by the Tax Investigation Office Dresden, in Germany, who reported it to the EPPO in 2023. The investigation counted on the support of Europol, Eurojust and law enforcement partners from several countries, including the Bulgarian National Investigation Service.