EPPO

An investigation into smuggling and VAT evasion, conducted by the European Public Prosecutor’s Office (EPPO) in Bologna (Italy), has led to a freezing order of €2 million, and of 3 555 096 metres of textiles smuggled from China. The estimated value of the seized fabric is €4.5 million.

The judicial order was executed by the Italian Financial Police (Guardia di Finanza) of Prato, against a textile trading company based in that city.

According to the investigation, the Italian company used false purchase invoices, ostensibly issued by companies located in Hungary, Germany and France, to conceal that the fabrics were actually imported directly from China. Analysis of documents and checks on the transport of the fabrics, carried out by the Guardia di Finanza, indicate that the company purchased the textiles directly from China – thus avoiding the payment of import VAT and customs duties, totalling an estimated €2 011 035.

The investigation also made it possible to identify the suspected manager of the operation, who presented himself as an employee of the Italian company. The suspect is under investigation for the crimes of smuggling and the use of false invoices.

The crimes under investigation took place between 2020 and February 2023. All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law.

Upon request of the European Public Prosecutor’s Office (EPPO) in Bologna (Italy), the Italian Carabinieri executed a freezing order of €153 000, as part of an investigation into aggravated fraud involving agricultural subsidies for young farmers.

At issue is a farm located in the province of Parma that obtained aid for young farmers from the Emilia-Romagna region, funded by the European Agricultural Fund for Rural Development (EAFRD) and managed by the agricultural payments agency in that region (AGREA – Agenzia regionale per le erogazioni in agricoltura).

However, according to the investigation, the legal representative of the agricultural company falsely claimed to be a young farmer managing a new farm, in order to obtain those subsidies. The evidence showed that the farm was actually managed by his parents, who did not meet the requirements for obtaining the money.

The freezing order, issued upon request of the EPPO by the judge for preliminary investigations of the Court of Brescia, was executed by the Carabinieri of Bologna - Investigative Department - EPPO Section.

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

On behalf of the European Public Prosecutor’s Office (EPPO) in Rome (Italy), the Italian Financial Police (Guardia di Finanza) seized €570 000, in an investigation into fraud involving the supply of dairy products to primary schools.   

On the radar of the EPPO is a company based in Altamura (Apulia), acting on behalf of a temporary association of companies that won a procurement procedure to supply dairy products to schools – a EU scheme to help children develop healthy eating habits, financed by the European Agricultural Guarantee Fund (EAGF). For that purpose, the company signed a contract with the Italian Ministry of Agriculture, Food and Forestry Policy (MIPAAF). 

On 26 June 2019, the legal representative of the company submitted to the Italian agricultural payments agency AGEA (Agenzia per le erogazioni in agricoltura) and MIPAAF a payment request of €570 000, for the expenses incurred for the provision and distribution of food.

However, following controls by AGEA, several elements brought into question the reliability of the documents submitted by the company. According to the investigation, carried out by Guardia di Finanza - Altamura on behaf of the EPPO, the company submitted fraudulent bank statements and falsified account books to certify that it had paid the suppliers. While the food was supplied, the evidence shows that the company did not actually pay any of the invoices from its suppliers, and was therefore not entitled to reimbursement.

In order to recover the damage to the EU budget, the pre-trial Judge of the Court of Bari issued a freezing order of €570 000, which was executed in full, by freezing the bank account of the company.

In an investigation led by the European Public Prosecutor’s Office (EPPO) in Turin, 13 properties, 4 plots of land and €400 000 of money in current accounts were seized in several cities in Italy by the Italian Financial Police (Guardia di Finanza) from Asti. Four suspects are believed to have fraudulently obtained around €3 million in EU and national funds to present their machines for food packaging at trade fairs abroad.

Between 2017 and 2020, three board members and the manager of the  company supposedly provided false information (e.g. alteration of financial statements) to the officials responsible for disbursing loans and received credits for over € 2.8 million from the EU programme for the Competitiveness of Enterprises and Small and Medium-sized enterprises (COSME) and almost € 70 000 from national funds.

The investigation by the Guardia di Finanza (Nucleo di Polizia Economico Finanziaria) revealed that the actual financial situation of the company involved in the fraud was critical and that they had suffered an operational loss of €11.9 million and a negative net worth of €7.3 million at the end of 2019.

The four suspects were reported to the EPPO office in Turin in February 2022 for aggravated fraud against the European Union, undue receipt of public funds and fraudulent bankruptcy. The criminal proceedings are still at the preliminary investigation stage, and the responsibility of the suspects will be finally established in the event of of a conviction.

The European Public Prosecutor’s Office (EPPO) in Bologna successfully closed an enormous customs fraud investigation with a confiscation of €4 million and a plea bargain of the main defendant. The Italian Financial Police (Guardia di Finanza) in Prato carried out the confiscation order and discovered the fraudulent trade of textiles from China.

According to the investigations, rolls of fabric were smuggled from China into the EU through an unknown entry point. Afterwards, German and Hungarian shell companies supposedly moved them within the internal market to Italy. The transport documents mentioned places of destination in Prato that were not true, so that the goods could not be traced and were in fact delivered to the real recipients, without custom fees and import VAT ever being paid.

The Guardia di Finanza previously executed the preventive seizure of 8 701 253 linear meters of fabrics, along with more than €300 000 in cash, two vans and forklifts. The seized fabrics were put up for sale during a public auction managed by the Prato Customs agency, and the proceeds of the auction were directly added to the seizure of the money. In total, the confiscation amounts to €4 million.