Four Cypriot businessmen known to European law-enforcement authorities as the “Cyprus Boys” are alleged to have been at the centre of an international financial-crime network accused of avoiding the payment of €115,529,455 in VAT through a complex iPhone-trading scheme.
According to a report by protothema.gr, the case is being investigated by the European Public Prosecutor’s Office (EPPO), while an order was issued on 13 October 2026 for the freezing of assets belonging to five individuals in Greece.
The investigation relates primarily to transactions conducted during 2019 and 2020, with the alleged fraud spanning Sweden and Germany.
Of the total amount involved, €80,860,171 relates to 33 alleged cases of VAT evasion in Sweden, while a further €34,669,284 is linked to transactions in Germany.
The four Cypriots
According to the case file, the four alleged ringleaders operated from offices in Cyprus and were identified by the nicknames “Andy”, “Chris”, “Blondie” and “Little George”.
“Andy” is alleged to have played the central role in designing the scheme, organising the purchase of mobile phones and controlling the financial platform through which funds were transferred.
“Chris” is described as a close associate who allegedly played an active role in distributing proceeds said to have been generated by the operation.
The third suspect, known as “Blondie” or “Tall George”, is described in the file as the group's “banker”, allegedly having created and controlled the payment platforms P-Exec and Rivalz.
The fourth suspect, known as “Little George”, is said to have previously worked for KPMG and allegedly oversaw accounts, transfers and financial statements.
How the network allegedly operated
According to European judicial authorities, those involved created a network of companies across several countries through which multiple sales and resales of mobile phones were conducted with the alleged aim of avoiding VAT liabilities.
The network reportedly included German companies, two businesses in Albania and seven companies involved in the Swedish side of the transactions.
To conceal the alleged fraud, investigators claim the participants used invoice chains that included transactions involving Voice-over-IP services and gift vouchers, which investigators believe were not genuine trading activities.
During a period of roughly two and a half months, from late July to mid-October 2019, approximately €7.25 million was allegedly spent on purchasing mobile phones.
Funds generated by the transactions were reportedly collected in corporate bank accounts in Sweden before being transferred to Cyprus through companies and payment platforms allegedly controlled by the four Cypriots.
European investigators are also examining potential offences related to money laundering and participation in a criminal organisation.
Assets frozen in Greece
A significant development in the case came with an order signed on 13 October by European Delegated Prosecutor Charikleia Thano, authorising the freezing of assets belonging to five individuals in Greece.
The move followed four rulings issued by a German court on 12 March 2026, ordering the seizure of assets linked to the four alleged leaders and referencing the amount of €80,860,171.
Assets frozen in Greece include:
- A third-floor apartment measuring 78 square metres in Glyfada.
- A four-square-metre storage unit in the same building.
- Two vehicles belonging to the individual known as “Andy”:
- DS 3 Crossback
- Audi A3 45 TFSIe
The freezing order also extends to bank accounts, investment products, safe-deposit boxes and other movable or immovable assets belonging to those under investigation, provided they are located in Greece and fall within the scope of the order.
The investigation by European judicial authorities remains ongoing, with the four Cypriots at the centre of inquiries into the alleged VAT-fraud mechanism and the movement of funds through corporate and financial structures in multiple countries.
Source: Protothema.gr
