International Online Investment Scam Dismantled with Eurojust’s Support
An extensive online investment scam, responsible for defrauding victims of at least EUR 300 million, has been successfully dismantled with the assistance of Eurojust. The operation, coordinated at the request of German authorities in Saxony, led to the arrest of a suspect in Cyprus. Eurojust facilitated the collaboration between German and Serbian authorities by establishing a joint investigation team (JIT) to tackle the case.
The investigation began in June 2020, spearheaded by the General Public Prosecution Office of Dresden and the Police Directorate of Chemnitz. It was initiated after numerous complaints from online investors, who had been misled by sophisticated fraudulent websites promising high returns on minimal investments. Victims rarely saw any returns, with some receiving a mere 3% of their initial investments. The perpetrators exploited these websites to obtain personal data and bank details, creating fake customer accounts to further the illusion of legitimacy.
To date, approximately 120 victims in Germany have been identified, suffering losses of about EUR 12 million. However, investigators believe the global scale of the fraud is far more extensive, with estimated losses ranging from EUR 300 million to potentially EUR 500 million. Several suspects have been identified during the investigation, including the alleged mastermind, who is now in custody. The investigation remains ongoing.
Given the connections to Serbia, a JIT was formed in February to enable seamless cooperation between German and Serbian law enforcement and judicial teams. Eurojust played a crucial role by organizing four coordination meetings involving representatives from Germany, Cyprus, and Serbia to prepare for the operation. The Agency also supported the execution of European Investigation Orders and Mutual Legal Assistance requests directed at Serbia.
The coordinated action saw 22 locations searched across Cyprus and Serbia. Authorities seized computer equipment, hard drives, mobile phones, and other digital data. Germany plans to request the extradition of the suspect arrested in Cyprus to advance the investigation.
According to Europa News:
The operation was conducted upon request and executed by the following authorities on the ground:
- Germany: The General Public Prosecutor’s Office (Generalstaatsanwaltschaft) Dresden and the Police Directorate (Kriminalpolizeiinspektion) Chemnitz.
- Cyprus: Cyprus Police.
- Serbia: The Special Prosecutor’s Office for High-Tech Crime and the Ministry of Interior’s Service for Combating High-Tech Crime.
- Israel: According to Internal teams 1 suspect named SHLOMO MATAN SHALOM AVSHALOM aka Shlomi Avshalom been fled from Cyprus to Israel.