The Judicial Police (Polícia Judiciária or PJ) arrested 39 people in Portugal during Operation Hermes, a European investigation targeting a carousel tax fraud scheme involving mobile phone sales. Coordinated by the European Public Prosecutor's Office, the operation investigated €410 million in missing value-added tax (Imposto sobre o Valor Acrescentado or IVA) across eight countries, including over €150 million lost to the Portuguese state. Authorities mobilised more than 1,000 officers in Portugal, conducting 248 searches and seizing 26 properties, 84 vehicles, company shares, and luxury assets.
Police Arrest 39 in Massive €150 Million VAT Fraud
Wednesday, 7 October 2026AI summary
Context & Explainers
The PJ (Polícia Judiciária) is Portugal's national criminal investigation police agency, founded in 1945. Operating under the Ministry of Justice and supervised by the Public Ministry (prosecutors), the PJ is a "higher criminal police body" specializing in serious and complex crimes. Mission: The PJ assists judicial and prosecuting authorities by investigating terrorism, organized crime, homicide, kidnapping, drug trafficking, corruption, cybercrime, financial crime, and money laundering. It conducts forensic examinations, operates Portugal's Interpol and Europol liaison offices, and maintains specialized units including the National Counterterrorism Unit and National Anti-Corruption Unit. Difference from PSP/GNR: While PSP (civilian urban police) and GNR (military rural police) focus on preventive policing, public order, and investigating minor crimes, the PJ exclusively handles serious crime investigation requiring specialized technical and scientific expertise. PSP and GNR report to the Ministry of Internal Affairs; PJ reports to the Ministry of Justice. PJ officers receive higher pay and prestige but face greater operational risk.
8 sources
- Penafiel Court convicts 13 defendants for 14-million-euro fraud against banking institutionscmjornal.pt ·
- VAT carousel fraud: 39 suspects arrested for defrauding the State of over 150 million euroscnnportugal.iol.pt ·
- Hermes. 39 arrested for VAT fraud involving mobile phones that cost the Portuguese state over 150 millioneco.sapo.pt ·
- VAT Carousel: Operation results in 39 arrests in Portugal and 410 million in losses across EuropeExpresso ·
- VAT carousel: 39 arrested in Portugal with losses of 410 million in Europeexpresso.pt ·
- Hermes. 39 arrested for alleged 150 million fraudobservador.pt ·
- Operation Hermes: 39 suspects arrested for defrauding the Portuguese state of over 150 million eurosdn.pt ·
- PJ detains 39 suspects for defrauding the State of over 150 million euros in VAT schemertp.pt ·
