US Returns $1.2 Million to Romanian Government After Tax Fraud Scheme on Fuel Imports Discovered
Over $1.2 million in forfeited funds from an international tax fraud and money laundering scheme for fuel imported into Romania will be sent back to the Romanian government, DOJ announced. The funds came from the sale of property located in Washington state that was owned by a Romanian couple who were extradited to Romania, the Aug. 26 news release said.
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In 2012, the U.S. received a request to extradite Radu and Diana Nemes over charges of tax evasion and participating in an organized criminal group. The two allegedly avoided taxes on imported diesel fuel by declaring it a lower grade of industrial and maritime fuel, DOJ said. The fuel's untaxed sales proceeds were then laundered through accounts and companies controlled by the Nemeses.
The couple left Romania, moving to a place near Yelm, Washington, on a large piece of land. The Nemeses were then arrested in the U.S. and agreed to be extradited to Romania in early 2014. The forfeited residence was sold, and the proceeds of the sale are being returned to the Romanian government. The tax fraud scheme itself resulted in a loss of nearly $58.7 million to the Romanian government, DOJ said.