Russia busts 1 trillion ruble VAT fraud scheme

Russian security forces have stopped a large-scale 'paper VAT' fraud scheme worth over 1 trillion rubles. The FSB states that an organized criminal group created about 4,800 transit companies and processed fictitious tax deductions for more than 40,000 organizations, cashing out the funds and moving them into the shadow economy. Over 30 searches were conducted in Moscow, St. Petersburg, Perm Krai, and the Belgorod region, with documents and data storage devices seized from affiliated accounting and consulting firms. The organizers have been detained, and authorities are identifying other suspects and entrepreneurs who used the scheme.