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Eurojust has assisted national authorities across Europe in tackling a massive fraud involving fake investments in cannabis plants for medicinal use. Two linked criminal organisations that advertised the scheme online and laundered the profits, which are estimated to be approximately EUR million, have been dismantled. In a coordinated action, nine suspects have been arrested. Eurojust supported authorities in Germany, Spain and France in setting up a joint investigation team JIT into the fraud. In Germany, France and Spain alone, over 4 victims have lodged formal complaints against the fraudsters, who set up a crowd-funding programme to raise a minimum of EUR 50 per investor for the development of medicinal cannabis plants. In reality, no cannabis plants were ever bought, although the organisers of the scheme pretended to work with legitimate and licensed enterprises that would cultivate them. The fraud ran from at least January to July Investigations in Germany and Spain, later followed by counterparts in other countries across Europe, showed that investors had been only partially paid. Most of the invested money was used to pay affiliates, keep the scheme running and expand the fraud through extensive online campaigns. For this purpose and to launder the proceeds, a web of international enterprises was used. The scheme itself appears to have been run by a Russian criminal network, with an affiliated German-based crime group. In total, around participants worldwide were registered as online investors, most of them European citizens. Around participants transferred funds, either via cryptocurrencies or bank transfers. Since , Eurojust has been extensively supporting the national authorities, including assisting the German, Spanish and French authorities in setting up and funding the JIT. This led to a successful Joint Action Day coordinated at Eurojust. At the request of the German and Spanish authorities, in recent days operational actions against the criminal networks were also carried out in Estonia, Latvia, Italy, Malta, Poland, Portugal, the United Kingdom and the Dominican Republic. The French authorities made a decisive contribution to the analysis of crypto flows during the investigations and took part in searches in Germany and Spain on the action day. Europol supported this massive cross-border investigation from the outset, taking the lead in operational coordination and providing tailored analytical support. Furthermore, Europol shared results of the financial investigations as well as other intelligence with the involved countries. On the action day, Europol deployed officers with mobile offices to various locations worldwide. During the action days, over thirty places were also searched and for several millions of Euros in crypto assets and bank accounts were frozen. Also real estate properties, luxury vehicles, artwork, cash and various luxury items were seized, as well as large numbers of electronic devices and documents. Subscribe to receive Eurojust press releases by email. Eurojust helps tackle massive fraud of EUR million with medicinal cannabis plants across Europe. Related tags: Fraud. Partners: Europol.

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