Ten arrested in VAT fraud operation

Ten people have been arrested in a series of UK-wide raids conducted by customs officers investigating a suspected £250 million VAT missing trader fraud.

The operation, codenamed Operation Euripus, follows a five-year investigation, which included one of the biggest swoops ever undertaken by HM Revenues & Customs (HMRC).

In July 2003, 350 officers raided 93 premises across the UK and Spain, making 42 arrests.

Tuesday's arrests took place in London, Newport, Nuneaton, Uttoxeter, Beaconsfield, Bedworth, Coventry, Bowdon. All ten men are being brought to police stations in London.

Those arrested are believed to be part of a sophisticated network of companies that 'carouselled' large quantities of mobile phones, buying them VAT-free from the continent to supply to businesses in the UK, then defaulting without paying the VAT due.

HMRC said that further arrests are expected and searches will continue at one address in Nuneaton.

European arrest warrants have also been issued against four individuals in France and Spain.

Euan Stewart, Deputy Director of Criminal Investigation for HMRC, said: "Today's arrests follow years of painstaking effort by dedicated officers. The sophistication of the organised crime gangs behind these frauds means that our investigations are increasingly complex, but we are committed to bringing the criminals behind it to justice and to recovering the money stolen from the British taxpayers, wherever in the world our investigations lead. This is not victimless crime; it's organised crime that causes real harm."

(KMcA)