Operation White Cat has required more than a year of investigation. The fraud detected exceeds sixty million euros. Some thirty people and several tax warehouses and beverage factories in different provinces belonging to the organization were implicated. The organisation has fraudulently imported more than forty containers of counterfeit tobacco from China. The main centre was located in Galdácano (Vizcaya).

Bilbao, October 14, 2008. The Tax Agency has dismantled an organisation dedicated to massive excise tax fraud and the smuggling of alcohol, derived beverages and tobacco throughout Spain. The estimated fraud figure could reach sixty-two million euros and thirty people are involved, who are considered responsible for the alleged crimes of smuggling, tax crimes, document falsification, money laundering and bribery. These people were arrested and, after making their statements, were brought before the court.

During the course of the investigation, eleven companies have been searched throughout the country, specifically in the provinces of Vizcaya, Álava, Barcelona, Murcia, Gijón, Valencia, Guipúzcoa, Navarra and Madrid, including two tax warehouses, two factories producing derivative drinks and several front companies, as well as thirteen addresses of members of the organisation, with abundant documentation, computer equipment and more than one hundred thousand bottles of drinks of different brands being seized.

Regarding excise tax fraud, in some cases the organisation falsified both the Barcelona Customs stamps and the documentation submitted to the administration, declaring the export of goods by the aforementioned Customs when in reality they have been diverted to other countries in the European Union and for domestic consumption in our country; and in others, the circulation of goods has been carried out without submitting the appropriate declaration, evading in both cases the payment of Special Taxes and Value Added Tax (VAT).

As regards tobacco smuggling, the organisation has fraudulently imported more than forty containers of counterfeit cigarettes of brands commonly consumed in the United Kingdom from China, several of which have been seized by the customs services of the Tax Agency. To do this, the identity of people and companies completely unrelated to this activity has been stolen, and the necessary collaboration of various customs agents who have been arrested has been counted on.

In order to carry out these activities, the organisation has created a business network, with the Galdácano (Vizcaya) centre being the most prominent, and has used a number of people, including business administrators, front men, and experts in customs operations, both in the management of special taxes and in imports, including customs agents and civil servants.

The investigation was carried out within the preliminary proceedings 808/07 of the Court of Instruction No. 9 of Bilbao.