Italian Authorities Dismantle Massive Financial Fraud Scheme Worth €440 Million
Italian and Austrian authorities have brought down a massive financial fraud scheme that used Italian companies to simulate business leases and false tax credits, depriving the Italian state of at least €440 million. The operation, which involved cross-border coordination with Eurojust, has resulted in the arrest of 12 suspects and the recovery of approximately 90% of the proceeds.
How the Fraud Scheme Worked
According to investigators, the organized crime group (OCG) allegedly used various tactics to carry out their fraud scheme:
- Selling false tax credits
- Simulating business leases in order to obtain COVID-19-related compensation
- Simulating tax credits for false works aimed at improving the safety and energy consumption of companies
The suspects, who are believed to be part of a large-scale criminal network, used various tactics to carry out their fraud scheme.
Assets Seized and Recovered
In a major breakthrough, authorities have recovered more than 90% of the proceeds, mainly in Italy. Seized assets include:
- Cryptocurrencies currently held in a wallet to prevent their movement
- Gold, platinum, and watches of significant value stored in a safe deposit box in Austria
Eurojust played a crucial role in coordinating cross-border judicial cooperation in this case, providing support for executing a European Investigation Order and freezing order issued by Italian authorities in Austria. The agency’s assistance enabled the authorities to track down and recover a significant portion of the stolen funds.
Authorities Involved
The investigation involved several authorities from Italy and Austria, including:
- Public Prosecutor Office of Rimini
- Financial Crime Unit of Guardia di Finanza of Rimini
- Central Public Prosecutor’s Office for Combatting Economic Crimes and Corruption
- State Criminal Police Agency Vienna
The coordinated effort has brought an end to a massive financial fraud scheme that had been operating undetected for some time.
Conclusion
The arrests and asset seizures are seen as a significant victory in the fight against financial crime, demonstrating the effectiveness of international cooperation in tackling complex and sophisticated criminal networks. This operation is a testament to the power of collaboration between authorities to bring criminals to justice and recover stolen funds.