Lycamobile operator fined 10 million euros over VAT fraud

The Paris court has just found the French subsidiary of Lycamobile guilty of money laundering and value added tax (VAT) fraud.

In mid-June last year, the trial of Lycamobile began in Paris, which was accused of having participated in a fraudulent system allowing it to be exempt from VAT. Several months after the end of the trial, on July 5, the 32^e criminal chamber of the Paris court has finally delivered its verdict, and condemned numerous actors in this fraud, including several managers.

17 million euros embezzled

It’s official. Lycamobile was convicted this week for “ knowingly participated in a complex and elaborate money laundering scheme » thanks to which 17 million euros were laundered in seven months. Two Lycamobile salespeople, resellers from the Chapelle district of Paris and a certain number of shell companies participated in this scam.

This group of people had developed a method to use a legal VAT exemption scheme for the benefit of construction companies, which sought to obtain cash, later used to clandestinely pay employees and contractors. leaders.

Around ten people sentenced in total

For these reasons, the court sentenced Lycamobile France to a fine of 7 million euros and Lycamobile Services to pay 3 million euros. On a personal level, former CEO Christopher Tooley was sentenced to 3 years in prison, including 18 months suspended, as well as a fine of 250,000 euros and a ban on managing a company for 5 years.

The general director of the two incriminated companies, Alain Jochimek, also suffered the same prison sentence, with the obligation to spend 18 months in prison at home under a bracelet. Eight other people were also given suspended prison sentences or house arrest with a bracelet.

Lycamobile, which talks about “ two salespeople having been laid off and fired upon discovery of this parallel activity » decided to appeal. The State which requested 7.9 million euros in damages was also unsuccessful, the court arguing that this request was impossible in the context of a fraud case.

Source : Capital, The world