Portuguese law enforcement agencies launched a massive sweep targeting complex economic crime on Wednesday, October 7, 2026, deploying roughly a thousand personnel in one of the largest operations conducted by the European Public Prosecutor’s Office. The coordinated raids focused on an alleged multi-million-euro mobile phone tax fraud scheme known as the value-added tax carousel.
Authorities initiated two distinct inquiries under the operational coordination of the Northern Directorate of the Judiciary Police. Investigators suspect that the state suffered losses exceeding 120 million euros through fraudulent transactions in the electronics sector. More than 40 arrest warrants were issued as part of the sweeping judicial actions, alongside searches spanning the country.
Massive Mobilization Across Portugal Targeting Economic Networks
The field operations involved a deployment of state resources, bringing together 700 personnel from the Judiciary Police, more than 200 operatives from the Tax Authority, and dozens of military personnel from the National Republican Guard. The force converged on roughly 150 companies, 50 accountants, and a dozen legal practices primarily in the northern region, though significant actions also took place in Lisbon and other parts of the country.
The investigation centers on mechanisms designed to evade national tax obligations through trade in mobile devices. Investigators are examining suspicions of corruption, tax fraud, criminal association, and money laundering tied to the tax fraud networks.
Those detained during Wednesday’s raids are scheduled to be transferred to Lisbon. They will appear before the Central Criminal Investigation Court on Thursday.
Upcoming Briefings and Judicial Proceedings
Representatives from the European Public Prosecutor’s Office, the Judiciary Police, and the Tax Authority are expected to provide further details regarding the scope of the investigation during a joint press conference at the conclusion of the operation.
Disclaimer: This article is for informational purposes only and does not constitute professional legal or financial advice.
