Romanian Police look into EUR 40 mln yearly tax evasion, money laundering scheme, Senator involved

Romanian prosecutors started as many as 256 home searches on Tuesday morning (July 24 ), trying to find evidence of an organized tax evasion and money laundering group which allegedly involves a Senator from the Social Democratic Party (PSD) and several employees of the Tax Administration (ANAF). The damages caused to the state by this group amount to EUR 40 million a year between 2010 and 2012, according to prosecutors.

Searches are being made in Ilfov, Giurgiu, Constanţa, Argeş, Buzău, Vâlcea, Gorj, Dolj, Timiş and Bihor counties, as well as in Bucharest, on Valea Cascadelor street, at several construction materials shops. As many as 125 people will be brought in for questioning. Four companies and groups of companies have been importing and delivering sugar from and to the EU market without registering the operations in their accounting while also registering non-existing operations in order to benefits from illegal VAT reimbursement from the state. PSD Senator Cezar Magureanu, who between 2010 and 2012 was with the Democratic Liberal Party (PDL), is also being investigated as part of the same group. editor@romania-insider.com