Court Keeps Assets Frozen in €40.7M VAT Fraud
Athens judges maintained the freeze on accounts and property tied to a Chinese-import tax fraud probe run by the European Public Prosecutor's Office.
Updated on Nov. 9, 2026 in Financial Crime
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The Athens Judicial Council kept assets frozen in a VAT fraud investigation involving Chinese imports cleared through Piraeus. The Athens First Instance Prosecutor's Office sent the ruling for immediate enforcement on 4 November.
Why it matters
The ruling blocks bank accounts, real estate, securities and other holdings of people and companies under investigation while the probe remains open. It underscores how cross-border VAT refund schemes within the EU can drain public revenue.
The Athens Judicial Council issued ruling 4293/2026 keeping the freeze in place after the earlier order neared expiry. The European Public Prosecutor's Office leads the case, which has seen raids on 20 targets in Attica.
The players
European Public Prosecutor's Office
The EU body that leads investigations into crimes affecting the EU budget, including cross-border VAT fraud.
Athens Judicial Council
The Greek judicial body that issued ruling 4293/2026 maintaining the asset freeze.
The details
Greek companies imported Chinese goods that cleared customs in Greece, and Bulgarian firms posed as middlemen reselling them to buyers in Italy and Spain. Under customs procedure 40, importers paid VAT on arrival and later claimed refunds by recording fictitious sales to other EU countries, while declaring values far below real prices to cut customs duties.
Timeline
- 8 May 2025: A European Delegated Prosecutor first froze the assets.
- 25 June 2025: Police raided 20 targets in Attica on EPPO's orders.
- 4 November 2026: Prosecutors sent the ruling for immediate enforcement.
Legal Context
The case shows the European Public Prosecutor's Office pursuing customs-procedure VAT refund schemes that span several EU member states, a model that is now central to EU efforts to protect its budget. Investigators coordinating across borders are also seeking help from at least 15 countries, reflecting how these frauds are prosecuted jointly rather than nationally.
Frozen assets mean the affected companies and individuals cannot access their bank accounts, property or investments while the probe continues. For taxpayers across the EU, the case highlights how fraudulent VAT refund claims divert public revenue that funds government services.
The takeaway
Cross-border VAT fraud can be pursued across multiple countries at once, and investigators warn the true losses may exceed what is currently known.
Further reading
Explore more on Financial Crime to see how cross-border fraud schemes like this one are investigated.
Source note: This article includes information reported by Greek City Times.
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