Italian police have arrested 11 individuals suspected of playing key roles in a massive €520 million ($604 million) value-added tax (VAT) fraud scheme allegedly supported by the Camorra, a notorious Italian crime syndicate, according to a statement released Tuesday by the European Public Prosecutor’s Office (EPPO).
Camorra Ties and “Mafia Methods”
The arrests stem from an ongoing probe, code-named Moby Dick, which has uncovered what the EPPO describes as a fraud operation of “unprecedented complexity and efficiency.” The suspects are believed to have used “mafia methods” to launder illegal proceeds from fraudulent VAT invoices. The EPPO says the network was abetted by specific Camorra clans, deepening concerns about the continued entanglement of organized crime in high-level financial schemes.
Scope of the Fraud and Investigation
Between 2020 and 2023, the network is alleged to have issued over €1.3 billion in fake invoices for high-value electronic goods such as AirPods and laptops. Of this, €520 million is considered the criminal proceeds of the fraud.
Authorities are pursuing a widening investigation involving:
