Seven suspects in custody: Investigators uncover suspected million-dollar diesel fraud

Customs and public prosecutors have uncovered suspected tax fraud amounting to millions in diesel sales. The investigators assume that at least 18 million euros in energy taxes were lost to the state. Seven suspects are in custody.

As the Munich customs investigation office and the Hof public prosecutor’s office announced, an Upper Franconian company is at the center of the case: tax-free lubricating oil from Eastern Europe is said to have been delivered to the company on a large scale since at least the beginning of 2023. It was re-declared as taxable diesel fuel and delivered to numerous recipients throughout Germany.

Lubricating oil also went to gas stations

The Upper Franconian entrepreneur is also suspected of having sold the untaxed fuel to consumers through the company’s own gas stations. A spokesman explained that it was technically possible to refuel diesel engines with it.

The Hof district court issued an arrest warrant against the man. In addition, arrest warrants were executed against six suspects who are suspected of having supplied the fuel. Around 37 million liters of fuel are said to have been converted through this network – that corresponds to around 1,230 tank trucks with an average tank filling of 30,000 liters.

In addition to the alleged fraud in energy tax, the authorities also assume around 3.6 million euros in damages due to sales tax evasion.

Evidence in the on-board toilet?

Last Thursday, 230 customs investigators searched residential and business premises at 32 locations nationwide. They secured numerous possible pieces of evidence, but according to the information they also came across 12,500 euros in counterfeit money. To protect against possible tax damage, numerous vehicles were confiscated – including tank trucks and cars.

According to descriptions from customs and the public prosecutor’s office, the operation also resulted in a film-worthy incident. One of the suspects was on the plane when he found out about the raid. There is a suspicion that he tried to make written records disappear – namely about the on-board toilet, the garbage can in the galley and the pockets of the surrounding seats. After landing in Frankfurt am Main, customs investigators searched the relevant areas and secured the contents of the trash can.