OCCRP: Six Convicted, €300M Confiscation Ordered in Mafia-Linked EU Tax Fraud

• OCCRP says the VAT carousel fraud network issued over 1.3 billion euros in fake invoices between 2020 and 2023.
• OCCRP notes the Moby Dick investigation involves more than 400 individuals and legal entities as suspects.

A Milan court sentenced six individuals to prison and ordered the confiscation of more than 300 million euros for their roles in a transnational tax fraud and money laundering syndicate tied to the Italian mafia. The convictions are part of 'Operation Moby Dick,' an EPPO investigation into a VAT carousel fraud scheme that issued over 1.3 billion euros in fake invoices between 2020 and 2023.

The judge confirmed aggravated circumstances for aiding and abetting a mafia association, with illicit funds funneled from a Camorra clan into the scheme. The six defendants received prison terms ranging from four years to seven years and two months, and several were barred from public office or commercial enterprises. The rulings remain subject to appeal.

• more than 300 million euros confiscation ordered by Milan court
• over 1.3 billion euros fake invoices issued by fraud network
• 520 million euros losses to EU and national budgets

• Screen for VAT carousel fraud typologies linked to 'Operation Moby Dick' and Camorra clan involvement.
• Review client and transaction histories for connections to 'missing traders,' brokers, and conduit companies across European and third countries.
• Monitor for individuals or entities named in EPPO's ongoing investigation involving more than 400 suspects.

This case highlights the increasing use of VAT fraud schemes by mafia organizations to launder criminal proceeds, as confirmed by the EPPO and Milan court. The scale—over 1.3 billion euros in fake invoices and more than 300 million euros confiscated—demonstrates the significant financial impact and complexity of such networks. Compliance officers must be vigilant for similar typologies, cross-border connections, and entities involved in large-scale tax fraud, especially those linked to organized crime groups.