Bulgaria Among 10 Nations in Crackdown on €144M US Car Smuggling Network

A major criminal network involved in trafficking and reselling heavily damaged vehicles imported from the United States has been dismantled through a large-scale investigation led by the European Public Prosecutor’s Office (EPPO). The operation was coordinated by EPPO branches in Berlin and Vilnius and spanned 10 countries, including Bulgaria. Approximately 1,000 police, customs, and tax officials carried out more than 200 raids as part of the effort.

The network targeted in the investigation imported severely damaged cars from the US and conducted superficial cosmetic repairs before reselling them within the EU, falsely presenting them as roadworthy or even “like new.” Individuals and entities from several EU member states—Lithuania, Romania, Germany, Belgium, and the Netherlands—as well as from non-EU countries including the US, Russia, Canada, and the UK, were implicated in the operation.

In Bulgaria, the National Investigation Service (NIS) was involved in assisting the probe. According to EPPO, the trafficked vehicles were typically acquired at auctions by American insurance firms and often listed as irreparably damaged. The cars were shipped to Europe through major ports such as Antwerp, Bremerhaven, Klaipeda, and Rotterdam. A network of fictitious companies and fraudulent invoices enabled the group to underreport the value of the imports, evading customs duties and VAT obligations.

After entering the EU, the vehicles were sent to repair shops in Lithuania, where instead of proper mechanical overhauls, they received only basic cosmetic fixes. These vehicles were later marketed primarily in Germany and other EU nations under false claims of being undamaged or fully restored. EPPO warned that many of the cars had critical hidden defects, including missing airbags, posing significant safety risks to unsuspecting buyers.

In Bulgaria, the investigation revealed the use of shell companies to mask true financial turnovers and facilitate money laundering. Evidence indicates that at least 16,500 of these vehicles were sold from Lithuania alone, generating approximately €144 million in revenue. The resulting loss to the EU budget is currently estimated at a minimum of €31 million.

Authorities have arrested 10 main suspects, among them a Lithuanian national believed to be one of the network’s leaders. An additional 18 individuals, mostly Lithuanians, have been detained for questioning. The investigation has also identified involvement by Russian nationals.

As part of the operation, law enforcement confiscated 116 vehicles valued at €2.3 million, €500,000 in cash, luxury items, and real estate assets—land and company shares—amounting to €5.1 million. Moreover, authorities have frozen €26.5 million held in various bank accounts.

The investigation is ongoing, and officials have not ruled out the possibility that the full extent of the trafficking network may be even greater than currently established.