Police break up large economic crime ring in Hungary

Hundreds of police and customs officials took part in a series of raids last Thursday to break up an international crime ring suspected of economic crimes worth a total of Ft 17 billion (roughly €66 million) in Hungary, Gazdasági Rádió reports, citing officials of the country's customs authority (VPOP).

According to the report, some 450 law enforcement officers carried out simultaneous sweeps at 70 locations, detaining 23 people during the dawn raids, while five other suspects remain at large. In addition to the Hungarians involved in the scam, the crime group is said to have Russian, Austrian and Slovak members.

Aided by employees of local banks and law offices, the crime group had operated 45 Hungarian and 20 foreign companies, some of them bogus. The crime in question involved importing a range of consumer goods - including person computers, washing machines and plasma TVs - from Austria, and then purporting to re-export them to Romania and Slovakia, while in reality selling them in Hungary. The resulting lack of VAT payments reportedly totaled some Ft 3.4 billion in lost tax revenues for the Hungarian state.

As part of its crackdown, the Hungarian police froze nearly 100 bank accounts, and seized several hundres of thousands of euros in a range of currencies, including forints, euros and dollars, as well as luxury cars. Police said three bank clerks have also been arrested in connection with the scam.

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