(Luxembourg, 25 March 2025) – 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, with the support of Europol, 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.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.