The Transport Prosecutor’s Office sent to court 10 criminal cases involving 10 legal entities and five private individuals that are accused of tax evasion in extremely large amounts and causing of damage of 12 million lei to the state budget thorough 23 phantom firms, IPN reports.

Prosecutor Vitalie Busuioc told a news conference that in 2011-2013, the suspects, through the agency of the phantom companies, performed a number of fictitious transactions to deliver equipment for trains and wagons to Moldova’s Railways to the value of 75 million lei. It was established that the given transactions weren’t confirmed by accounting documents. Thus, damage of 12 million lei was caused to the state budget by not paying taxes.

The investigators carried out 38 searches at the legal address and head offices of the phantom companies, sequestrating bank accounts of economic entities. The fraudulent scheme involves an inspector of the Main State Tax Inspectorate, who will stand trial for misuse of power.

The suspects are investigated on the outside, but were banned from leaving the country. For tax evasion, private individuals are liable to a fine of 60,000 to 100,000 lei or up to six years in jail, while legal entities face a fine of 60,000 to 120,000 lei, ban on performing certain activities or liquidation of the company.

The Ministry of Transport and Road Infrastructure issued a communiqué, saying it is expecting the employees of Moldova’s Railways involved in this case to be suspended from posts for the period of the investigation.