Gabrovo Police Raids Uncover Money-Laundering Gang

The Bulgarian town of Gabrovo was the base of operations of an organized gang specializing in money laundering and draining the state budget. Photo by BGNES

Police raids in the Bulgarian town of Gabrovo have resulted in several arrests of members of an organized gang active in money laundering and siphoning of state funds.

A combined force of regional police, anti-mafia officers, and Unit for Fighting Organized Crime (GDBOP) personnel, mounted a special operation on Monday night under the coordination of the Gabrovo Regional Prosecutor’s Office, the Interior Ministry’s press office has announced on Tuesday.

The operation has led to the uncovering of an organized crime network operating in the town. Five alleged gang members have been arrested for offenses relating to money laundering, and the siphoning of funds from the state budget.

The group had been active since 2008, and drained state funds through large-scale illegal withdrawals of VAT. The group had group registered fictitious companies throughout the country on behalf of socially weak people, and members of the criminal group held proxies to represent them.

Accounting documents containing false information were presented before the respective National Revenues Authority offices to obtain a tax credit against the fictitious transactions.

According to preliminary information, the amount of illegally withdrawn VAT exceeded BGN 1 M. The gang leader distributed the proceeds, making monthly payments of between BGN 300 and BGN 500 to the fictitious owners.

In searches of the private homes, offices and cars of the detained, the police discovered and seized computers and computer configurations, powers of attorney, and documents prepared for release to fictitious contractors.

The identities of those who registered companies and bank accounts used in the criminal scheme have been confirmed. The places where the preparation of false documents had been done have also been established.

The five persons arrested have not been named, but they include the alleged ring-leader - a 47-year-old from Gabrovo, and four other key players, two from Pernik, the other two also from Gabrovo.

The five were detained for up to 24 hours in Gabrovo, while work on the full clarification of the case continues. The office of the Regional Directorate in Gabrovo has initiated pre-trial proceedings.

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