EPPO

At the request of the European Public Prosecutor’s Office (EPPO) in Palermo (Italy), a freezing order of over €15 million, issued by the judge for preliminary investigations of the Court of Palermo, was executed today against seven individuals and five companies, suspected of fraud involving EU funds, self-money laundering and tax evasion. 

The judge also ordered restrictive measures against the seven suspects, which prohibits them to apply for subsidies, to enter into contracts with public administration, and to engage in certain professional or entrepreneurial activities. In addition to seizing money, real estate, and company shares, the Italian Financial Police (Guardia di Finanza) of Palermo also seized a well-known campervan adorned with political messages and two coffins on top, which had been parked next to a historic landmark in Palermo for over a year and belonged to the suspects.

It is alleged that the suspects falsified documentation, including formal declarations, technical reports, and photographic reports, to unlawfully obtain over €4.5 million from the European Regional Development Fund (ERDF) to build a fuel distribution system, a farm with stables, and a vineyard with an enclosed cellar. Of the requested figure, over €2.2 million has already been paid out.

According to the investigation, the suspects also issued and used invoices for non-existent operations amounting to €8.3 million, allowing the suspects to receive over €3.4 million in VAT reimbursements. 

In addition, evidence was uncovered of self-money laundering – which involves the same individuals committing both the primary fraud and the subsequent laundering of the illicit proceeds. It is believed that over €1.1 million of the fraudulent proceeds were used to purchase real estate from bankruptcy proceedings and for speculative investments, aiming to obscure the criminal origins of the money. Another €850 000 in criminal proceeds is also alleged to have been misappropriated. 

To prevent the five companies under investigation from continuing their economic activities, the judge ordered that they be seized, and appointed a judicial administrator to oversee them. In total, the companies are valued at €7.5 million.

All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law.

At the request of the European Public Prosecutor’s Office (EPPO) in Palermo (Italy), the Italian Financial Police (Guardia di Finanza) have executed a freezing order against two farmers suspected of fraud involving agricultural funds, with an estimated damage of €650 000.

It is alleged that, between 2017 and 2023, the suspects, who own a farm in Scordia, falsely declared ownership and possession of land in the municipalities of Vittoria and Acate, in order to obtain EU agricultural funds. It is understood that they thereby misled the Italian Agricultural Payments Agency (Agenzia per le erogazioni in agricoltura – AGEA), and unduly received over €650 000 in EU subsidies.

The timing of the investigation made it possible to block the payment of at least €50 000. 

At the request of the European Delegated Prosecutors, the judge for preliminary investigations of the Court of Caltagirone ordered the seizure of assets, including bank accounts, property and cars, corresponding to the amount unduly received – a measure that was executed on 21 May by the Guardia di Finanza of Ragusa. 

All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law.

At the request of the European Public Prosecutor’s Office (EPPO) in Palermo (Italy), a freezing order of over €442 000, issued by the judge for preliminary investigations of the Court of Catania, was executed today against three individuals associated with an agricultural business operating in the province of Catania, suspected of fraud involving EU agricultural funds.

According to the investigation, the suspects successfully applied for over €375 000 in EU agricultural funds between 2020 and 2023, by falsely declaring ownership and possession of land (over 368 hectares) in the Sicilian provinces of Syracuse and Catania. In addition, the suspects had received over €65 000 in payment entitlements directly from the Italian Agricultural Payments Agency (AGEA).

The investigation demonstrated that the suspects were not in fact owners of the land, and that they only had the right to mow its grass – as they had won the contract to do so from the actual owner of the land, the Naval Air Station Sigonella. That is why they were not allowed to use it for agricultural activities, but only to carry out the grass mowing service.

The suspects are two brothers and the partner of one of them. One of the brothers used to work for Italy’s Agricultural Assistance Centre (CAA), while the other is the owner of the agricultural business. It is understood that the latter’s partner actively contributed to the suspected fraud.

Money and financial assets received from AGEA and financed by the Common Agricultural Policy (CAP) were seized by the Carabinieri Agri-food Protection Department of Messina (Reparto Carabinieri per la Tutela Agroalimentare di Messina).

All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law.

At the request of the European Public Prosecutor’s Office (EPPO) in Milan (Italy), the Italian Financial Police (Guardia di Finanza) have arrested the suspected ringleader of a complex tax fraud involving the sale of cosmetics. Over €3.6 million is being seized, pursuant to an order by the judge for preliminary investigations of the Court of Rome.

Simultaneous investigative measures have also been carried out in Austria, Bulgaria, Czechia, Lithuania, the Netherlands, Romania and Slovakia.

On the radar of the EPPO is a company based in Rome, operating in the wholesale perfume and cosmetics sector. It is understood that this company is part of a fraudulent scheme to evade the payment of VAT, using a network of shell companies and fictitious tax credits, as well as forged invoices for business transactions that did not actually take place. 

The investigative activities also indicate that the company unlawfully accessed substantial loans, backed by public guarantees provided by EU funds designed to support small and medium-sized enterprises (SMEs), which were granted by several credit institutions upon the submission of falsified documentation. Such conduct allowed the suspect to obtain unjust profits, part of which is understood to have been laundered in Azerbaijan, Switzerland and the United Arab Emirates – siphoning off resources from the company, to the detriment of creditors, which led to the company’s bankruptcy.

It is estimated that the illicit activities of the criminal organisation caused a loss of over €2 million to the EU and national budgets in unpaid VAT, and the loss of an additional €1.6 million due to the fraudulent obtaining of EU-backed loans from the banks.

All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law.

At the request of the European Public Prosecutor’s Office (EPPO) in Rome and Turin (Italy), the Italian Financial Police (Guardia di Finanza) of Rome are currently arresting eleven suspects and seizing assets worth up to €25 million, in an investigation into a VAT fraud involving the sale of electronic goods.

According to the evidence, the suspects – a group of entrepreneurs and accountants – formed a criminal organisation and employed a variety of fraudulent tactics in order to carry out the scheme. These are understood to have included the issuance of fake invoices for non-existent goods and fictitious transactions via foreign-based companies, acting as so-called missing traders – shell companies established for the sole purpose of evading the payment of VAT. It is alleged that this allowed them to sell electronic products at artificially low prices, undercutting legitimate competitors and resulting in VAT losses to the EU and national budgets exceeding €25 million.

The investigation also revealed evidence of self-money laundering – a form of money laundering in which the same person perpetrates both the primary offence and the money laundering offence. It is believed that a portion of the allegedly fraudulent proceeds was first transferred to an additional company, which in turn transferred the money to the suspects’ bank accounts abroad.

The eleven suspects will be placed under house arrest and five of the eleven face twelve-month bans from holding managerial positions in companies and other entities. 

All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law.