Two tradesmen are currently on trial in Glostrup, Denmark, accused of money laundering and VAT fraud for allegedly purchasing fictitious invoices from invoice factories. The case, one of four test cases, could have significant implications for hundreds of similar cases.

The prosecution alleges that the two men, both bricklayers, purchased 20 invoices six years ago from companies identified as CCS Group, Uniqueva, and RR Staffers. These companies are alleged to have laundered approximately 350 million kroner in total, operating as pure invoice factories under the police case complex codenamed “Outpay.”

The prosecution claims the defendants paid over three million kroner for the invoices to pay employees in cash without declaring the income. This, they argue, constitutes money laundering, also referred to as self-laundering, and VAT fraud amounting to 585,000 kroner.

The defendants deny the charges. One of the defense lawyers, Martin Andersen, argued that the case is a “trial balloon” seeking to establish a new, unacceptable legal precedent with collective punishment. He stated that there is no evidence that his client, a co-owner of the construction company, ever saw the invoices in question.

The special prosecutor from the National Unit for Special Crime (NSK) maintains that the purpose of the invoice purchases was to obtain cash back from the invoice factories to pay for undeclared work. He argues that the money the invoice factories received from their customers, including the defendants, constitutes proceeds from crime.

The court’s decision, to be made by a judge and two lay judges, is pending.