[HN Gopher] Two scammers, a web of betrayal, and Europe's fraud ...
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       Two scammers, a web of betrayal, and Europe's fraud of the century
        
       Author : samclemens
       Score  : 61 points
       Date   : 2024-03-10 06:06 UTC (16 hours ago)
        
 (HTM) web link (magazine.atavist.com)
 (TXT) w3m dump (magazine.atavist.com)
        
       | throwup238 wrote:
       | _> I should say here that Gustav Daphne is a pseudonym. He
       | remains a wanted man in France, so when I traveled to meet with
       | him at his gated villa in Tel Aviv, he agreed to speak on the
       | condition that I not use his name--any of his names._
       | 
       | This caught my attention and I decided to do some sleuthing to
       | see how hard it would be to figure out the real name and...
       | there's dozens of people that might fit the description [1]. The
       | cynic in me notes that they all seem to have dogs that the
       | journalist just has to write, I guess as some sort of PR
       | technique via emotional hook.
       | 
       |  _> He made contacts and built extensive networks of people
       | willing to help him import and export fake goods, and he traveled
       | around the world despite the risk it carried._
       | 
       | Took quite a turn towards the end. He didn't turn over a new
       | leaf, at all.
       | 
       | [1]
       | https://www.lemonde.fr/en/international/article/2023/06/03/t...
       | (https://archive.ph/yG1dN)
        
       | tromp wrote:
       | According to [1],
       | 
       | > In 2008 and 2009, multiple groups of fraudsters took advantage
       | of differing tax rules in different EU countries to buy and sell
       | carbon credits, or permission to emit carbon dioxide, on
       | exchanges in Europe. The scammers would buy the credits in a
       | country with no value-added tax, and quickly sell them in France
       | or other countries that did charge VAT.
       | 
       | > Stephane Alzraa, 38, was extradited from Israel following a
       | request by French authorities.
       | 
       | > Aknin remains in Israel, where he is fighting extradition
       | 
       | This 39 year old Michael Aknin seems to fit the story...
       | 
       | [1] https://www.timesofisrael.com/trial-starts-for-franco-
       | israel...
        
         | canadiantim wrote:
         | Is that fraud or just arbitrage?
        
           | throw_m239339 wrote:
           | > Is that fraud or just arbitrage?
           | 
           | It's VAT fraud, so literally tax fraud.
        
             | ysofunny wrote:
             | .
        
               | reactordev wrote:
               | Yeah. Loopholes are usually filled with the bodies of
               | those that abused it to the point of being paved over. So
               | even if _Chad_ was winning, he lost, and the ability to
               | play will be removed.
        
               | throw_m239339 wrote:
               | The article spends at least 4 paragraphs explaining how
               | the scheme works, did you read it?
               | 
               | There is no loophole, since what they did was illegal to
               | begin with and they knew it, it's a very basic and common
               | scheme, it's VAT fraud and that type of fraud has existed
               | since VAT exists.
        
               | Recursing wrote:
               | Reminds me of: https://xkcd.com/1494/
        
           | bsder wrote:
           | If you read the article, it's fraud.
           | 
           | They ran the exact same fraud as had been run on cell phones.
           | 
           | > Criminals imported phones from other EU countries, sold
           | them to consumers with VAT tacked on, pocketed the tax, and
           | disappeared before anyone was the wiser. Or they used
           | carousel schemes, pretending to sell phones through a chain
           | of businesses created for the express purpose of fraud and
           | requesting VAT reimbursements from governments at each point
           | of sale.
        
         | nhggfu wrote:
         | Where / what are these "exchanges" in Europe? examples ?
        
         | shrubble wrote:
         | Israel does not necessarily extradite for financial fraud, that
         | is why Aknin is fighting it in court. There are many legal
         | maneuvers available in the Israeli court system.
        
           | yommiejonson wrote:
           | >>There are many legal maneuvers available in the Israeli
           | court system
           | 
           | I bet
        
         | kostas4949 wrote:
         | I think it's Cyril Astruc. His parents fit the job descriptions
         | in the article: tailor and teacher.
        
       | dantondwa wrote:
       | Funny that he is now into... cryptocurrencies. The man has
       | experience with bogus markets.
        
       | octopusRex wrote:
       | So when does Netflix make a limited series based on this.
        
         | burningChrome wrote:
         | I think they already did in 2021 called "Lords of Scam".
        
       | Atxgirl1415 wrote:
       | Wow.. that is so crazy. Thank you for the good read
        
       | contingencies wrote:
       | Unmitigated hyperbole couched in minutia. Pop journalism at its
       | epic worst.
       | 
       | Bigger tax frauds occur daily.
        
       | Scoundreller wrote:
       | > The way the system was supposed to work was simple enough: The
       | EU would set an annual cap on its overall emissions, then issue
       | various emitters a certain number of EU allowances. Each EUA
       | would entitle its holder to emit one ton of carbon.
       | 
       | I'm a serial pirate and I'll only do worse next year. Can you pay
       | me to pirate a bit less next year, while giving nothing to those
       | that never pirated at all?
        
         | Swenrekcah wrote:
         | It's not really comparable because the pollution was being
         | generated as a byproduct of a presumably useful service or
         | industry. This puts polluters under a regulatory limit that
         | didn't exist before, gives the time to adjust while also
         | providing an early incentive to decarbonise sooner rather than
         | later (they can sell the credits they didn't need to use).
        
       | mellutussa wrote:
       | I'd love to listen to a podcast about this.
       | 
       | When I saw "fraud of the century" I thought it was the OneCoin
       | scam (Ruja Ignatova, "The Crypto Queen"). BBC did a very detailed
       | investigative podcast about that one:
       | https://www.podbean.com/podcast-detail/uj5nz-a0b8a/The-Missi...
        
         | GauntletWizard wrote:
         | [delayed]
        
       | newprint wrote:
       | Like FTX/SBF, this person would have probably become an
       | accomplished businessman, if his criminal mind wasn't in his way.
       | Fascinating to read how crafty those people in exploiting any
       | gaps where potential profits could be made. They are like is
       | financial "hackers" that can segfault some .org.
        
         | mkoryak wrote:
         | Like SBF?
        
           | newprint wrote:
           | yes, you are right !
        
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