Major VAT Fraud in Detergent Sector Uncovered: Eight Indicted, 33 Million Euros Seized
Verona, May 27 – A significant international VAT fraud scheme, primarily involving the wholesale trade of household and personal care products, has been dismantled by the Guardia di Finanza in Verona. The operation has led to the indictment of eight individuals and the seizure of over 33 million euros. Personal precautionary measures were issued by the Judge for Preliminary Investigations (GIP) of the Court of Naples and executed with the support of Neapolitan colleagues, following an investigation coordinated between the European Public Prosecutor’s Office (EPPO) in Venice and the Croatian office.
Investigation Unveils International Criminal Network
According to information released by the Guardia di Finanza, the operation began by scrutinizing alerts concerning several companies based in Verona. Investigative activities, spanning over a year, successfully exposed a criminal network with international ramifications, dedicated to VAT fraud in the wholesale trade of detergent products.
Sophisticated Fraudulent System and Involved Parties
The investigation brought to light a sophisticated fraudulent system built upon companies fictitiously based abroad. These entities purchased goods from Italian wholesalers without VAT application, subsequently formally transferring them to shell companies located in the Campania region. Following this, the merchandise was moved to filter companies, deliberately omitting the payment of due taxes. All legal entities involved in this fraudulent chain were managed in Italy by a criminal association primarily based in the Naples area.
Tactics to Evade Controls
To complicate the detection of this evasive scheme, the indicted individuals consistently rotated the legal entities involved, registering VAT numbers under straw men, often individuals with no assets. The supply chain, further convoluted by numerous transactions between foreign companies, resulted in an undue tax saving exceeding 33 million euros. This illicit advantage enabled the indicted parties to implement aggressive commercial strategies, introducing products into the national market at highly competitive prices.
Precautionary Measures and Seizures
The Judicial Authority, endorsing the findings of the Guardia di Finanza of Verona, had already ordered a preventive seizure aimed at confiscation for a total amount of approximately 33.8 million euros. Following guarantee interrogations, two arrests were made, with the promoters taken to prison, four individuals placed under house arrest as facilitators, and two other associates subjected to mandatory reporting and interdiction from business activities.
International Collaboration Key to Success
The success of the operation was made possible by the close coordination between the EPPO in Venice and the Croatian office. They initiated parallel investigative actions both nationally and internationally. This joint effort allowed for the unmasking of a criminal association with an international scope, dedicated to VAT fraud and capable of harming fair competition and legitimate businesses.
