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A suspected ringleader in a vast cross-border VAT fraud scheme has surrendered to authorities in Milan after six months on the run, the European Public Prosecutor’s Office (EPPO) said.
The man, wanted in connection with the 520 million euros ($587.8 million) scheme code-named “Moby Dick,” was taken into custody at Milan’s Malpensa airport after arriving from Tirana, Albania. He had evaded capture in Prague last November during a major international operation coordinated by the EPPO.
The suspect is accused of criminal association aggravated by mafia involvement, aiding mafia clans, money laundering, and a string of tax crimes tied to intra-EU VAT fraud.
Authorities allege that mafia-linked networks bankrolled a highly organized criminal syndicate that used shell companies across the EU and beyond to trade electronics—such as AirPods, laptops and other goods—through a carousel fraud scheme. Fake invoices totaling more than 1.3 billion euros ($1.47 billion) were issued between 2020 and 2023, allowing the group to claim 520 million euros in fraudulent VAT refunds.
According to EPPO investigators, mafia methods were also used to settle internal disputes within the network, underscoring the criminal operation’s reach and cohesion.
The suspect’s arrest brings a new turn in the EPPO-led probe, which last year resulted in the arrest of 43 people across more than 10 countries. Prosecutors say the level of coordination and financial sophistication in the scheme is “unprecedented” in Europe.
