The defendants reportedly paid 2.5 million euros too little in taxes. The OM demanded unconditional prison sentences of two times 4 years, one time 3 years, and three times 2 years, with all cases having 6 months unconditional.
The OM started the investigation when it became clear that the income in the defendants bank accounts was much higher than reported to the tax authorities. According to the prosecutor, it has been revealed that the defendants acted cunningly. They paid significant amounts to Google to appear at the top of search results as sewer cleaners, using names of reputable companies to gain customer trust.
Clients intimidated
The criminal network had 70 to 80 subcontractors under their control, who were sent out with a standard invoice format with fixed starting and travel costs. There was always a fixed description of the work performed. Clients needing urgent assistance had to sign before the work commenced. Afterward, unjustified and unexpected costs were charged, for example, for an extremely high price per meter of spiral used. The Financial Intelligence Unit (FIOD) recently received a delivery note with a price of almost 140 euros per meter. Additionally, in some cases, 40 meters of spiral were charged for a clogged sink. If clients did not pay immediately, they were intimidated. Complaints from clients do not automatically indicate fraud, but according to the OM, that is the case if there are complaints or reports about how services and prices are presented, such as impersonating employees of another company or stating that costs are covered by insurance.
Methods revealed
The revenue collected by subcontractors was initially deposited into Dutch and later Bulgarian accounts of the defendants via mobile card readers. When a Dutch television program highlighted the practices of these defendants, their methods were adjusted. Subcontractors were instructed to set up their own sole proprietorships and open business accounts. This way, revenue was directed to accounts managed by the defendants but in the names of the subcontractors.
Millions in revenue
The criminal organization generated millions in revenue, with the defendants appropriating 85% of the proceeds. The cash flow to their own accounts was concealed in various ways, often by placing money laundering companies in between. This way, the revenue was deliberately kept out of sight of the tax authorities. Revenue that was previously directly deposited into Bulgarian accounts via subcontractors subsequently went to the personal accounts of the defendants. Bulgarian accounts were then closed immediately, with cash withdrawn to purchase luxury goods such as cars, watches, or expensive bags. Additionally, chat conversations have revealed that the defendants funneled large amounts of cash to Morocco via private jets.
Sentence demand
The prosecutor described the defendants methods as cunning and brazen. She indicated that, in addition to the suffering of clients, a factor aggravating the sentence is that the defendants seemed indifferent to the fate of the subcontractors, who are also victims as they could receive tax assessments and possible fines imposed on their businesses. The prosecutor demanded unconditional prison sentences of two times 4 years, one time 3 years, and three times 2 years, with all cases having 6 months conditional.
If the judge later finds that there is a criminal organization intended to defraud vulnerable customers, then victims will have a strong case for compensation through a civil procedure.