Fuel Scam: ZOLL-M's Lubricating Oil Being Deceptively Marketed as Diesel Fuel

In a significant development, customs investigators in Germany have uncovered a large-scale smuggling operation of untaxed oil products, suspected to have resulted in a preliminary estimated loss of approximately 18 million euros in taxes.

The investigation, which began at least since the start of 2023, has revealed that up to 16 tanker trucks of smuggled oil were pumped into the fuel tanks of an Upper Franconian company daily. This oil was then illegally sold as diesel fuel to business customers and end consumers nationwide.

Last Thursday, November 14, customs investigators conducted nationwide raids on 32 locations across Germany, seizing 15 tanker vehicles, 6 trucks, 6 trailers, and 10 passenger cars. The contents of the storage tanks were secured by sealing them at seven gas stations and on the company premises.

Suspects traveling by plane during the raids attempted to destroy or dispose of written records in various places on the plane. Five Polish tanker trucks loaded with diesel fuel were also stopped during the raids, carrying approximately 150,000 liters of diesel fuel.

During the raids, customs investigators secured extensive evidence, including business documents, written records, electronic devices, and large amounts of cash and counterfeit money. Six arrest warrants were executed against members of groups suspected of the smuggling.

An arrest warrant was also issued against an Upper Franconian businessman who is suspected of selling the untaxed diesel fuel to end consumers via company-owned gas stations. It is suspected that freight papers and hazardous material warning signs may have been altered to diesel fuel during the journey.

The oil was distributed by the Upper Franconian company via its own tanker trucks to numerous recipients nationwide. The procedure for suspected tax evasion in particularly serious cases or commercial tax fraud is ongoing, but further details cannot be disclosed due to investigative tactical and personality rights reasons, as well as tax secrecy.

Dr. Tino Igelmann, head of the Customs Criminal Office in Cologne, commented on the operation, stating that the raids were conducted due to suspicions of large-scale smuggling of untaxed oil from Eastern Europe. The Hof Public Prosecutor's Office oversaw the implementation of the measures on site with two public prosecutors.

In addition to the tax investigation departments, who are also investigating suspicions of value-added tax evasion with a preliminary estimated loss of an additional 3.6 million euros, the operation marks a significant step in combating the illegal smuggling of untaxed oil products in Germany.