Romanian businessman Iustin Paraschiv, who owns the Carmistin group and has an estimated wealth of some EUR 70 million, is being investigated for alleged tax evasion.

Paraschiv, 31, who was previously included among the most successful businesspeople in Romania, allegedly committed EUR 10 million in tax evasion, his offence linked to a bigger case in which 16 other people have been arrested.

The overall damages caused by the alleged tax dodging syndicate reach EUR 70 million, according to prosecutors.

The people already arrested include a former prosecutor Angela Nicolae and her son, Daniel Nicolae, Moubarak Mahmoud Sleiman, who was allegedly the head of the tax evasion ring, and tax administration clerk Antonio Burlacu.

Another 12 other people, Paraschiv included, are not allowed to leave Romania for the next 30 days.

The network, which involved 100 companies, their shareholders, accounts and employees of the Public Finance Ministry, was evading taxes while selling meat products, mainly poultry.

Iustin Paraschiv is currently being accused of having initiated and taken part in the syndicate, which, via his companies, caused a EUR 10 million loss to the state budget.

The companies involved in the network did not pay VAT and the profit tax, and used the support of several state clerks and of the accused prosecutor to carry out the evasion.

Several employees from the tax administration ANAF helped the group modify their fiscal declarations in order to receive VAT returns or illegally deduct VAT.

According to prosecutors, the shell firms controlled by Moubarak Mahmoud Sleiman were used via the ring, helping other larger companies to make money illegally.

The beneficiaries included poultry producers Avicola Mihăileşti, Avicola Crevedia, Avicola Tărtăşeşti and Avicola Călăraşi, dairy distributors Palrom Inter, Palrom, Lacto Food and Lactmar, food distributors Atifco Internaţional and Caliprix International, as well as meat producer Carmistin, controlled by Iustin Paraschiv.

The network came into the spotlight following the withdrawal of 13 tonnes of poultry from sale in Bucharest and Brasov, after the meat was found to be infested with salmonella.

Paraschiv controls a group of companies including Carmistin, Avicarvil, Ladrisi Grup and Pajo Holding, which together make a turnover of over EUR 120 million.

editor@romania-insider.com