THE HAGUE - A large-scale online investment scam has been dismantled with support of Eurojust. The perpetrators allegedly ran a fraud scheme that used fake investment platforms to deprive victims of at least EUR 300 million. At the request of the German authorities in Saxony, yesterday one suspect was arrested in Cyprus in a coordinated action. Eurojust assisted the German and Serbian authorities in setting up a joint investigation team (JIT) into the case.
The General Public Prosecution Office of Dresden and the Police Directorate of Chemnitz started investigations in June 2020, following complaints from online investors. They had been lured to professionally designed websites, promising high returns on low investments. Victims only received a maximum of 3% of their initial investment, if any money was returned at all. Through the websites, the perpetrators managed to gain access to personal data and bank account details, creating fake customer accounts to lend credibility to the scheme.
To date, around 120 German victims are known, who have lost approximately EUR 12 million. However, further assessments by German investigators indicate that there are many more victims worldwide, with the fraud totaling at least EUR 300 million. It could even be as high as EUR 500 million. As result of these investigations, a number of suspects have been identified, including the one alleged main perpetrator, who has now been arrested. Investigations into the fraud are ongoing.
Due to links with Serbia, a JIT was set up with the help of the Agency in February this year, to ensure close cooperation between German and Serbian judicial and law enforcement investigators. Eurojust also organised four coordination meetings with participation of German, Cypriot and Serbian representatives to prepare for the action day and assisted with the execution of European Investigation Orders and requests for Mutual Legal Assistance to Serbia.
During the action day, 22 places were searched in Cyprus and Serbia. Furthermore, computer equipment, hard drives, mobile phones and digital data have been seized. Germany will ask the Cypriot authorities to surrender the arrested suspect.
The action day was carried out at the request of and by the following authorities on the ground:
· Germany: General Public Prosecutor’s Office (Generalstaatsanwaltschaft) Dresden; Police Directorate (Kriminalpolizeiinspektion) Chemnitz
· Cyprus: Cyprus Police
· Serbia: Special Prosecutоr’s Office for High-Tech Crime, Service for Combating High-Tech Crime (MOI)
