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The Tax Agency dismantles a large Chinese organisation dedicated to smuggling and money laundering in Valencia

- 11 people arrested for alleged tax crimes, smuggling, money laundering, document falsification and against industrial property

- The actions affect 25 companies involved in a scheme to import merchandise from China that was distributed in the Cobo Calleja (Madrid) and El Carrús (Elche) industrial estates.

- 233 bank accounts have been blocked and 35 tons of tobacco and 300,000 counterfeit items with a combined value of more than 24 million euros have been seized.

 - The investigation has made it possible to detect tax fraud estimated at 20 million euros and transfers to China amounting to 118 million.

The Tax Agency has dismantled an important organization dedicated to the introduction into Spain of merchandise from China and money laundering. The network, which operated from the Valencian Community, extended its criminal activity to smuggling of tobacco and counterfeit goods, tax fraud, laundering and falsification of documents. The investigation aimed at dismantling this organization has allowed, so far, the arrest of 11 people in Valencia, Barcelona and Alicante, the blocking of 233 bank accounts and the seizure of contraband merchandise with a value of more than 24 million euros. including more than 300,000 fake products valued at 20 million.

 The operation, called 'Sleeping Beauty', began in May 2012 with a complex investigation, carried out in several phases. Under the supervision of the Investigative Court number 20 of Valencia, and taking advantage of information received from the French customs services, expert analysts from the Customs Surveillance of the Tax Agency, located seven containers with granite coating as declared merchandise in the commercial port of Valencia. However, hidden inside, more than 35 tons of tobacco chips were found, with an estimated value of more than four million euros.

 As a result of these events, an investigation was initiated that led to a group of people and companies whose economic activity was focused on the import of containers and whose merchandise, of Chinese origin, was distributed mainly in the industrial estates of Cobo Calleja (Madrid). and El Carrús (Elche) for marketing or subsequent diversion to different markets in the European Union.

 Fraud and money laundering

 The organization under investigation had its operations center in the city of Sagunto and from its offices criminal activity was carried out based on the concealment of tobacco and counterfeit contraband items.

 In addition, it used customs clearance procedures and an invoice falsification scheme that allowed substantial tax savings and enviable competitive conditions in the markets compared to competing economic operators. The tax fraud discovered by the Tax Agency is estimated at 20 million euros and affects VAT, tariffs and Corporate Tax.

 Both the flow of money transferred to China, more than 118 million euros between 2009 and 2012, and the tax profile of the more than 25 companies investigated, put the Inspection Services of the Tax Agency, both the Customs Department, on alert. as well as the Financial and Tax Inspection.

 The complexity of the information obtained and its exploitation made it necessary to coordinate experts from the different Units of the Tax Agency, both Customs, Customs Inspection and Surveillance, and the Financial and Tax Inspection.

Finally, the judicial authority proceeded to authorize nine entries and searches in the companies that constituted the main nucleus of the operations under suspicion, both in Valencia and Barcelona.

 Account blocking

 As a result of these searches, in which units of Customs Surveillance, Customs Inspection, Financial and Tax Inspection with their computer support units and the Regional Collection Unit have participated, abundant documentation on paper and computerized support has been seized that will be analyzed by the researchers. Likewise, an order has been issued to block 233 accounts that these companies and the people who ran them had open in bank offices throughout the national territory.

 The eleven detainees (eight in the province of Valencia, two in Alicante and one in Barcelona), have now been handed over to the judicial authority, which has proceeded to take their statements. They are charged with the crimes of smuggling, against the Public Treasury, document falsification, crime against industrial property and money laundering. The police investigations have not concluded and new arrests and searches are not ruled out in the near future.

 This operation carried out by the Tax Agency is part of the annual fraud control plan, which has as one of its priorities the comprehensive control of the import and sale of merchandise from Asia with the aim of dismantling possible underground economy circuits. In this same context, the Agency already announced last January the results of a large operation in Barcelona against a group of 23 companies that could have committed 133 tax crimes in the sale of Chinese merchandise.