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(Luxembourg, 16 May 2024) – 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.
The European Public Prosecutor’s Office (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.