Russian Organizer of a Large-Scale "Paper VAT" Fraud Scheme Detained in Minsk. What is it?

According to the investigation, through the service created by Osin, fictitious deductions for value-added tax totaling over 1.2 trillion Russian rubles (about 15.32 billion dollars) passed only in 2023-2025. Thousands of clients of this scheme have already been issued demands for additional tax payments amounting to more than 300 billion rubles (about 3.83 billion dollars).

44-year-old Alexander Osin was detained by Belarusian security forces in Minsk, where, according to the investigation, he had been living for the past six months. In Russia, he was put on the wanted list as part of a criminal case concerning the organization of selling knowingly fake invoices and tax declarations, as well as illegal circulation of payment instruments.

The scheme being investigated by Russian authorities involved creating fictitious business operations. Clients received fake documents – invoices, waybills, acts of work performed – even though no actual delivery of goods or provision of services took place.

These "transactions" existed only on paper. Companies included them in their tax reporting and thereby illegally reduced the amount of VAT they were supposed to pay into the budget.

According to Russian investigative bodies, tens of thousands of clients, including large companies, used the platform's services. For organizing such schemes, participants charged a fee of approximately 2-3% of the amount of the fictitious documents.

Hundreds of people were allegedly involved in the scheme, according to the investigation. Some were engaged in finding clients, others helped reduce tax payments, and still others ensured connections with companies, tax authorities, and law enforcement agencies.

The group's central office was located in Moscow, while regional structures operated in various Russian cities, including St. Petersburg, Perm, and Belgorod.

Osin himself, according to the investigation, traveled between Russian regions and controlled the work of his associates before being declared wanted.

In parallel, another similar case is being investigated in Russia – against the company "Tax Doctor," which offered "tax optimization" services. Investigators believe that in 2025 alone, through such VAT machinations, the state could have lost more than 10 billion rubles (about 127.7 million dollars).

Participants in this group have already been charged not only under articles on tax crimes but also for participation in an organized criminal community. Similar charges are expected to await the participants in Alexander Osin's scheme.

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