In a widespread police operation involving 131 search warrants, over €4 million in ill-gotten gains has been traced to bank accounts operated by dodgy dealers from 'Gold Shops' in Portugal.
In two weeks, three gangs have been pounced on, each involved in a swindle that would have cost the state upwards of €60 million in lost VAT.
On Tuesday nine people in two gangs were arrested in various parts of the country in an operation involving more than 300 investigators, policemen and tax inspectors.
The aim was to dismantle those criminal organisations that were "strongly implicated in the practice of criminal association, tax evasion and money laundering ," according to the Judicial Police.
The groups, which controlled networks of high street gold shops, set up a gold export scheme to other European Union countries. In some cases there was no documentation at all and in others the declared value of the precious metal was far below the bullion trade price.
This modus operandi was used by the third group based in Gondomar which was busted two weeks ago. At that time seven people were arrested with two remaining in custody and three paying bail of €1.5 million. Each of the three groups are said to have operated independently and are not linked.
"The investigations have been going on for a year and allowed us to establish the existence of groups purchasing and selling precious metals, acting in concert and trading without correctly declaring their activities to the Tax Authority. This has harmed the national treasury through the non payment of tens of millions of euros in VAT and other taxes," read a police statement.
So far the police team has accounted for more than €30 million of evaded VAT and other taxes for the period under investigation. It is estimated that the fraud exceeded €22 million in one case and €8 million in another."
The PJ has frozen various associated bank accounts and other investments worth more than €4 million, has confiscated 22 properties and 31 top of the range cars including Porsche, Jeep and BMW. Police also found a €100,000 in cash, 20 kilos of gold and three firearms.
The nine suspects will be traneferred to the Central Criminal Court in Lisbon where they are to be prosecuted by the feared Central Bureau of Investigation and Prosecution, the department that specialises in highly organised crime.
