Hydrocarbon VAT fraud
Judge Pedraz proposes trial for 16 in €148 million hydrocarbon VAT fraud case
A Spanish judge has proposed bringing 16 people to trial for one of the country's biggest tax frauds in recent memory. Judge Santiago Pedraz of the Audiencia Nacional says the defendants cheated the state out of €148 million in VAT on fuel sales between 2018 and 2021, according to Diario de Ibiza. The case is known as 'Gaslow.'
Among those proposed for trial are businessman Claudio Rivas, described as the chief architect of the scheme, and a captain of the Civil Guard — Spain's national police force — who allegedly took monthly payments to protect the network, El Periódico Mediterráneo reported.
How a Fuel Network Stole €148 Million in VAT
The scheme was a classic 'missing trader' fraud. Rivas's network set up shell companies that bought fuel wholesale and sold it to gas stations. Those gas stations paid 21% VAT on every purchase. But the shell companies kept that money instead of sending it to the Spanish Tax Agency, according to La Opinión de Málaga. Then the companies vanished before the quarterly tax deadline.
Investigators identified 38 shell companies used to move and hide the money. The fraud ran for three full years, from 2018 to 2021, and the total loss to the public treasury reached €148,438,529. Legitimate fuel sellers could not compete. Rivas's network undercut market prices because it was, in effect, using unpaid tax as a subsidy.
A Civil Guard Captain on the Criminal Payroll
One of the most striking allegations in the case is the involvement of Captain Rubén Villalba of the Civil Guard. Investigators say he received between €2,000 and €5,000 per month from Rivas's network. In exchange, he passed on information about police surveillance, helping the operation stay hidden for years, Información reported.
Villalba is now proposed for trial on charges of bribery and membership in a criminal organization. His alleged role shows how the network did not just exploit a legal loophole — it actively corrupted a state official to keep the scheme running.
Operation Gaslow: From Raids to the Courtroom
The Civil Guard launched 'Operation Gaslow' in November 2021. Officers raided multiple locations and arrested Rivas. The case then moved to the Audiencia Nacional, where Judge Pedraz spent over two years reviewing the evidence. In June 2024, he closed the investigation and issued a formal order to move toward trial, La Opinión de Zamora reported.
Pedraz stated there are 'sufficient indications' to proceed. He described the structure as 'perfectly organized' and designed to gain 'illicit profit through the systematic non-payment of VAT.' The prosecution and the State Attorney — representing the Tax Agency — must now file their formal charges, including sentencing requests. Given the scale of the fraud, Rivas could face more than 15 years in prison.
Recovery of Stolen Funds Looks Unlikely
Getting the €148 million back is a long shot. Much of the money was laundered through offshore accounts in Luxembourg and Portugal. Spain has tightened its rules for hydrocarbon operators since the fraud was uncovered. New rules require stricter financial guarantees and more frequent reporting to prevent companies from disappearing within a single tax quarter, El Día reported.
The case also carries a political dimension. Critics on the right have linked Rivas to Víctor de Aldama — president of Zamora CF — and to the broader 'Koldo Case,' a separate scandal involving pandemic-era contracts. The Gaslow case, they argue, points to a wider problem with how Spain granted wholesale fuel licenses to companies that had no intention of paying their taxes.
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