Operation of the Tax Agency and National Police

• A clandestine firearms workshop was discovered in a house in Ávila, containing 44 weapons, some modified and with their serial numbers erased, war ammunition, and an armored war vehicle with a large-caliber machine gun installed.

• So far, the fraud has been found to amount to approximately 300 million euros between 2023 and 2024.

• Eight people have been arrested and another ten are under investigation as alleged perpetrators of money laundering, tax evasion, membership in a criminal organization, and illegal possession of weapons.

• In the nine raids, more than 130,000 euros, 167 luxury watches, financial assets exceeding 14 million euros, and accounts with more than 12.5 million euros were seized, along with more than 3.6 million liters of fuel, 60 high-end vehicles, and 46 properties.

December 18, 2025. Tax Agency officials, in a joint operation with National Police agents, have dismantled an organization allegedly responsible for one of the largest VAT frauds committed to date in the hydrocarbon trade, defrauding nearly 300 million euros. The searches resulted in the seizure of money, luxury watches, and financial assets. In addition, accounts containing more than 12.5 million euros, more than 3.6 million liters of fuel, luxury cars and real estate have been frozen. In addition, a clandestine factory for firearms and war ammunition was located in a house. The eight detainees and those under investigation are charged with money laundering, tax evasion, belonging to a criminal organization and, in the case of one of the leaders, illegal possession of weapons.

Illicit techniques to offer fuel at unbeatable prices

The investigation began in early 2023 when agents became aware of large financial movements by companies involved in the hydrocarbon trade that were consistent with possible money laundering. This revealed the existence of two oil operators that were systematically failing to meet their tax obligations – non-payment of VAT–. Initial investigations revealed that there might be a single criminal organization behind both oil companies that were carrying out these illegal operations, causing great concern among other companies in the hydrocarbon sector. The criminal network offered the product at prices well below the actual market value as a result of tax evasion.

As the investigation progressed, they discovered how this criminal network could sell the fuel even at a price lower than the acquisition cost, that is, selling at a loss. On the one hand, by not paying the VAT charged to the State Tax Administration Agency (AEAT), they were able to offer gasoline and diesel to intermediary companies and service stations at much lower prices than any competitor who did comply with their tax obligations.

On the other hand, they also did not comply with the sector regulations relating to biofuels, which require a compensatory payment – which also meant another non-payment of around 40 million euros – in the event of not using biofuels, thus obtaining in these two ways a wide economic margin with which to offer their supplies.

Own tax deposit systems

 The investigators verified that this criminal network had its own bonded warehouse to store the fuel, a technique that is uncommon in the sector, since it is usual to contract the services of third-party companies. Furthermore, this organization had a vocation for continuity in this criminal activity, since, as a result of the illicit profits obtained with the first oil operator, they were able to create and register a second operator to continue with the criminal activity. They even went so far as to create a third oil operator, with which they also began to operate fraudulently, although it was quickly removed from the Register of Tax Deposit Extractors (REDEF) by the AEAT, thus preventing it from continuing to extract and sell product, which is why the amount defrauded by this third operator did not reach the level of a crime.

The organization had a hierarchical structure led at the top by two partners under whose command were the financial managers who controlled the accounts and were in charge of all business accounting.

Front men who were paid around two million euros

At the bottom of the ladder were the workers, many of whom were unaware of the criminal activity being carried out.

Finally, not part of this structure, there were the front men, who were selected to lend their identity and thus appear as responsible for the tax obligations generated by the oil operators, one of them receiving remuneration of around two million euros.

Once the investigators managed to identify all the members of this organization, a police operation was set up on December 2nd, carrying out nine simultaneous raids and searches – seven homes in Madrid and Ávila and two offices in the capital of Madrid – where more than 140,000 euros, 167 luxury watches valued at around two million euros, and financial assets exceeding 14 million euros were seized. In addition, accounts with more than 12.5 million euros, more than 3.6 million liters of fuel, 60 high-end vehicles worth more than three million euros, and 46 properties worth more than five million euros have been frozen.

Clandestine workshop with weapons and ammunition of war

In one of the houses located in Ávila, the agents found a veritable clandestine workshop for firearms and war ammunition. Forty-four firearms were seized, some with the serial number erased and modified with silencers, war ammunition and an armored war vehicle with a large caliber machine gun installed on top.

Finally, eight people were arrested and ten more people were questioned as suspects, including the leaders of this network, as alleged perpetrators of the crimes of money laundering, tax evasion, membership in a criminal organization and illegal possession of weapons. So far, it is known that VAT fraud amounts to almost 300 million euros between 2023 and 2024, making it one of the largest operations against organized crime in this type of offense to date.