Fuel Fraud: Counterfeit Lubricating Oil Passed Off as Diesel Fuel by ZOLL-M
In a significant development, nationwide raids were conducted on 32 locations across Germany on November 14, 2023. The operations, led by customs investigators from various cities, targeted a suspected large-scale sale of untaxed diesel fuel valued at around 52 million euros.
The investigation, spearheaded by the Munich Customs Investigation Office, involves several companies and individuals suspected of illegally selling over 37 million liters of smuggled diesel fuel as regular diesel through tax evasion. These entities are also suspected of submitting false tax declarations to avoid fuel tax payments.
Around 300 customs investigators, along with experts and personnel from several offices, were involved in the raids. The raids resulted in the seizure of 15 tanker vehicles, 6 trucks, 6 trailers, and 10 passenger cars, with one seized tanker truck estimated to be worth nearly 400,000 euros.
Five Polish tanker trucks loaded with diesel fuel were stopped during the raids, containing approximately 150,000 liters of fuel. Samples of their contents were taken upon order of the Hof Public Prosecutor's Office, and all five tanker trucks were secured.
In addition, extensive evidence was secured during the raids, including business documents, written records, electronic devices, and cash. A tax evasion investigation was initiated against the drivers on the spot, and a suspect traveling on an aircraft approaching Frankfurt am Main during the raids is believed to have attempted to destroy or dispose of written records he had with him.
The Upper Franconian businessman, under investigation, is also suspected of selling the untaxed diesel fuel to end consumers through company-owned gas stations in the Hof district and Vogtlandkreis.
Dr. Tino Igelmann, head of the Zollkriminalamt in Cologne, stated that the investigation shows how criminal behavior can give economic actors significant competitive advantages. The suspected sale was without proper taxation and involved the distribution of diesel fuel to commercial customers and end consumers across the country.
Investigators believe that, at least since the beginning of 2023, the contents of up to 16 tanker trucks of smuggled oil were pumped into the Upper Franconian company's fuel storage facilities daily. Six arrest warrants were executed against members of groups suspected of large-scale supply of untaxed smuggled oil.
The preliminary estimated tax loss (energy tax) is around 18 million euros, with an additional 3.6 million euros suspected for value-added tax evasion. Further details cannot be disclosed at this time due to investigative tactical and personal rights reasons, tax secrecy, and ongoing investigations.
The investigation into suspected tax evasion and commercial tax fraud continues.
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