EPPO

Today, at the request of the European Public Prosecutor’s Office (EPPO) in Naples (Italy), the Italian Financial Police of Caserta (Guardia di Finanza – Compagnia di Mondragone) executed an order of the judge for preliminary investigations at the Court of Salerno, to arrest 12 suspects and seize assets worth over €9.6 million. 

The investigation targets 67 individuals and 27 companies suspected of fraudulently obtaining EU agricultural funds.

According to the investigation, between 2018 and 2022, the criminal association unlawfully secured over €12.5 million by falsely presenting one of its companies, based in Salerno, as a so-called Producer Organisation (PO), which is a recognised group of farmers, entitled to receive EU funding that supports collective investments for their members’ benefit.

Evidence suggests that the suspects falsified several documents to fraudulently misrepresent the company’s compliance with the essential requirements of POs status under EU law. 

This company, allegedly deceived the Campania Region, Italy’s Agricultural Payments Agency (AGEA) and the EU, by unduly receiving EU agricultural subsidies financed under the Common Agricultural Policy (CAP).

The perpetrators of these offences are under investigation for alleged aggravated fraud to obtain public funds and criminal association.

The Italian Financial Police has placed 12 individuals under house arrest and has seized financial assets belonging to them and to the involved companies totalling €9.660.813.89.

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 €800 000 was issued against five individuals and one company suspected of EU funding fraud involving ceramic production. The Italian Financial Police (Guardia di Finanza) of Sant’Agata di Militello subsequently seized real estate, bank accounts and cash found in the possession of the suspects.

According to the evidence obtained, the suspects successfully applied for around €560 000 in EU structural funds from the European Regional Development Fund (ERDF) between 2018 and 2021, by falsely declaring the costs of purchasing machinery for ceramic production. They allegedly used a scheme of over-invoicing and fake transactions to misrepresent the costs by inflating them significantly, and to claim tax benefits on transactions that had never been carried out.

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

 The European Public Prosecutor’s Office (EPPO) in Bologna, Naples and Rome (Italy) today seized assets worth €20 million, including a tourism resort and over 150 properties, following an investigation code-named ‘Fuel family’ into a criminal gang alleged to have imported fuel to the Italian market while systematically evading VAT.  

At the request of the EPPO, the Italian Financial Police (Guardia di Finanza) in Piacenza seized an exclusive bathing resort, located in the province of Liguria; six high-value properties, located in the province of Piacenza; and 66 buildings and warehouses, as well as 77 plots of land, located in the provinces of Alessandria, Brindisi, Cuneo, Milan, Novara,  Piacenza and the municipality of Chiavari. In addition, law enforcement agents seized eight company offices, located in Milan and Piacenza, and company shares. Nine vehicles (including six luxury cars), three motorbikes and cash were also seized, and bank accounts were frozen. 

Earlier in this investigation, in March 2024, a criminal group was dismantled, involving 59 suspects and 13 companies. Judicial measures were ordered against eight individuals, including the suspected ringleaders. Thanks to the investigation, assets belonging to the criminal syndicate were now identified and seized.

At the heart of the criminal scheme, according to the investigation, is a criminal association, whose members are sometimes linked by family ties, operating a massive VAT fraud in the fuel trading sector, with branches in Italy and abroad. According to the investigation, the fuel was imported from suppliers located in Croatia and Slovenia, as well as other countries, using a chain of more than 40 missing traders in Italy, which would vanish without fulfilling their tax obligations. 

Based on the evidence, the fraudulent activities generated invoices for simulated transactions amounting to over €1 billion, causing an estimated damage of around €260 million in unpaid VAT. The criminal group is also suspected of laundering over €35 million of the illicit proceeds, using bank accounts of companies located in Hungary and Romania. This money would ultimately be handed over in cash to the perpetrators of the fraud, following systematic bank withdrawals. 

The VAT evasion also allowed the group to resell the fuel at extremely advantageous prices, distorting the principles of fair competition on the market.

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

Today, at the request of the European Public Prosecutor’s Office (EPPO) in Turin (Italy), the Italian Financial Police (Guardia di Finanza) of Turin executed an order of the judge for preliminary investigations at the Court of Nola, to arrest 13 suspects and seize assets worth up to €100 million. The investigation targets an organised crime group suspected of large-scale VAT fraud in the trade of plastics products.

The investigation uncovered a complex criminal network with international links based in the Campania region of Italy. To execute today’s measures, law enforcement authorities in Belgium, Hungary, Italy, Latvia and Slovakia were also mobilised. In Italy alone, around 100 officers from the Italian Financial Police (Nucleo di Polizia Economico Finanziaria - Guardia di Finanza) of Turin, assisted by specialised units and regional commands, conducted arrests and searches in Piedmont, Campania, Lombardy, Tuscany, and Lazio. Specialised ‘cash dog’ units were deployed to locate hidden assets.

A sophisticated VAT fraud scheme

The evidence shows that, between 2018 and 2023, the suspects fraudulently issued and used invoices for non-existent transactions totalling €500 million, resulting in a VAT evasion of around €100 million.

The scheme involved a network of shell companies that acted as intermediaries in the sale of industrial plastics products. These companies, often lacking any real business activity, systematically failed to declare and pay VAT. By inserting multiple fictitious entities into the supply chain, the suspects obscured the real flow of goods and finances, making it difficult to trace the ultimate beneficiaries.

The fraudulent setup allowed the suspects to sell products at prices significantly below market value, distorting competition and harming legitimate businesses in the sector. Meanwhile, the actual recipients of the goods -Italian companies in Piedmont, Lombardy, and Tuscany-used the plastics products in their industrial processes.

Arrests and asset seizures

The Court of Nola issued precautionary measures against 13 individuals. Six suspects have been placed in pre-trial detention, while seven others are under house arrest.

Additionally, financial assets and other property belonging to 15 individuals and 13 companies have been seized.

Ongoing investigation

A total of 52 individuals are under investigation for alleged crimes, including participation in a criminal organisation, VAT fraud, issuing and using false invoices, failure to file tax declarations, tax evasion, and unlawful tax compensation.

The investigation continues to identify further links in the fraudulent network and freeze additional assets to cover the estimated illicit proceeds of crime.

All persons concerned are presumed 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 judge for preliminary investigations of the Court of Messina issued a freezing order of over €160 000, corresponding to the amount of EU funds obtained. The measure was executed today against two individuals associated with an agricultural business and two operators of an Agricultural Assistance Center (CAA) who are suspected of fraudulently securing these funds. 

According to the investigation, between 2018 and 2022, the suspects successfully applied for around €135 000 in EU agricultural funds and unlawfully obtained an additional 120 payment entitlements worth approximately €25 000, by falsely declaring the management of agricultural land in the province of Messina. However, they had no legitimate right to use the land, as it was either leased by third parties or declared on the basis of expired and unrenewed contracts.

Two operators of an Agricultural Assistance Center (CAA) allegedly facilitated the fraudulent scheme by failing to conduct the necessary checks on the documentation submitted by the agricultural entrepreneurs. These omissions misled Italy’s Agricultural Payments Agency (AGEA), allowing the suspects to unlawfully receive more than €160 000 in EU agricultural subsidies financed under the Common Agricultural Policy (CAP).

Money and financial assets were seized today 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.