FOUR people have been arrested during early morning raids in Lancashire today.

Officers from HM Revenue & Customs, investigating a suspected European-wide ‘missing trader’ VAT fraud involving mobile phone and electronic communications trading, searched 12 premises in Preston and 2 in Blackburn.

Four arrests were made in Preston and none in Blackburn.

The arrests follow an international joint investigation into an alleged import/export VAT fraud with suspected links across the UK, Germany, the Czech Republic, Hungary and Holland.

Raids also took place in Leicestershire, Cornwall and Kent with a further four arrests.

Mike O’Grady, HMRC Assistant Director of Criminal Investigation said: “We are working in unison with other law enforcement agencies across Europe today.

"This investigation, codenamed ‘Operation Vista’ in the UK, is targeting a suspected organised crime gang involved in a multi-million pound VAT repayment fraud and the associated laundering of the criminal profits.

“Further details cannot be provided at this early stage, as our investigation is continuing.

"However, tax fraud and attempts to launder the proceeds of crime are treated extremely seriously by HMRC, and we will relentlessly pursue any individuals or crime gangs believed to be attacking the Public Revenue in this way.”