A Milan court has sentenced six individuals to prison and ordered the confiscation of more than 300 million euros ($344.66 million) for their roles in a transnational tax fraud and money laundering syndicate tied to the Italian mafia, the European Public Prosecutor’s Office (EPPO) announced on Thursday.
The convictions mark the latest judicial actions in "Operation Moby Dick," a massive EPPO investigation into a VAT carousel fraud scheme. Between 2020 and 2023, the network issued over 1.3 billion euros ($1.49 billion) in fake invoices for AirPods, laptops, and other electronics, resulting in 520 million euros ($597.35 million) in losses to EU and national budgets.
The Milan judge confirmed aggravated circumstances for the criminal syndicate’s aiding and abetting of a mafia association. According to the EPPO, one of the convicted defendants received illicit funds from a Camorra clan—which investigators previously linked to the Nuvoletta and Di Lauro groups—and funneled the money into the scheme to launder the mafia's proceeds.
“These verdicts confirm what the EPPO has been warning about for years: mafia organizations are investing in VAT fraud as a vehicle to launder their criminal proceeds,” European Chief Prosecutor Laura Kövesi said in a statement.
The six defendants, who opted for an abbreviated trial procedure to receive a one-third reduction in their sentences, were handed prison terms ranging from four years to seven years and two months. The judge also barred several defendants from holding public office or operating commercial enterprises, and ordered the seizure of real estate, company shares, and over 300 million euros ($344.66 million) in illicit profits.
Among those convicted was a ringleader of the syndicate who evaded arrest in Prague in November 2024 and remained a fugitive for six months before surrendering in May 2025.
The judge accepted the prosecution's reconstruction of a complex, federated network of "missing traders," brokers, and conduit companies operating across numerous European and third countries.
The overall proceedings in the Moby Dick investigation involve more than 400 individuals and legal entities as suspects. Authorities noted that some individuals hit with earlier seizure orders have already settled their debts with tax authorities.
The EPPO noted that the rulings were issued at first instance and remain subject to appeal.
