Authorities in Italy have arrested 11 people suspected of laundering hundreds of millions of euros from a Europe-wide tax fraud scheme that exploited cross-border trade and relied on mafia-style protection.
The suspects, detained in coordinated raids across Milan and Palermo, are accused of operating a criminal network behind what investigators call one of the most complex VAT fraud cases ever uncovered in the European Union.
The operation, code-named Moby Dick, centers on a carousel scheme that used shell companies to move electronic goods — such as AirPods and laptops — across borders, issuing fake invoices worth more than €1.3 billion between 2020 and 2023. Investigators say the scheme generated illegal VAT refunds and funneled the proceeds through a web of front companies and accounts.
The European Public Prosecutor’s Office (EPPO), which requested the arrests, said the network employed mafia methods and maintained ties to the Camorra’s Nuvoletta and Di Lauro clans. Authorities believe the group provided financial and logistical support to organized crime in exchange for protection and access to laundering infrastructure.
Tuesday’s arrests build on a wider operation launched in November 2024, when EPPO coordinated raids in over ten countries, leading to 43 arrests. One of the suspected ringleaders surrendered last month after arriving in Milan from Tirana, Albania.
In total, 195 individuals and more than 400 companies are under investigation. Italian prosecutors have ordered the freezing of assets worth over €520 million, including 129 bank accounts, 192 real estate properties, and 44 high-end cars and boats.
While the suspects have not yet been formally charged, the breadth of the enforcement action underscores the scope of the alleged fraud — and the network’s ability to circumvent tax authorities across multiple jurisdictions.
