Maxi Fraud Uncovered in Rome Restaurants: 500 Undocumented Workers and 4 Million Euro Tax Evasion
Rome, April 16, 2026 – A significant fraud scheme operating within Rome’s restaurant sector has been exposed, revealing a network that exploited approximately 500 undocumented workers and facilitated widespread tax evasion. The operation, spanning from 2023 to 2026, has led to the seizure of five restaurants and three companies, with charges including fraudulent bankruptcy.
Undocumented Workers Hired Through a “Reservoir Company”
The investigation, conducted by the Guardia di Finanza’s 3rd Metropolitan Operational Unit of Rome, unveiled a sophisticated system of illicit labor supply. Workers were formally employed by a “reservoir company” – an entity lacking any real business structure – and subsequently assigned to various roles in Chinese restaurants, many operating under the “all you can eat” formula. These roles ranged from dishwashers to kitchen staff, waiters, and cleaners. The daily wage for these workers was reported to be around 40 euros.
Over half of the 500 undocumented workers identified were located in Rome, specifically in the Parioli and Nomentano districts. Due to the legally void nature of the employment contracts, the financial police have re-established direct employment relationships with the restaurants that utilized these workers. Consequently, these restaurants face fines totaling 300,000 euros, along with a proposal for the suspension of their business activities.
4 Million Euro Tax Fraud and Unpaid Contributions
The inquiry further revealed an estimated 2 million euros in unpaid withholding taxes and social security contributions. The companies involved in the scheme used fictitious invoices issued by the “reservoir company” to unlawfully reduce VAT and direct taxes, resulting in a total tax fraud estimated at approximately 4 million euros.
Fraudulent Bankruptcy Allegations and Restaurant Seizures
In parallel, investigations coordinated by the Public Prosecutor’s Office of Rome have targeted three other companies that owned the five seized restaurants. These establishments, popular with tourists, are located in prominent areas such as Fontana di Trevi, Trastevere, Piazza Venezia, and Esquilino.
To evade debts exceeding 2 million euros owed to the tax authorities and creditors, these companies allegedly transferred business branches to new entities. These new entities continued operations without assuming the accumulated liabilities, leading to serious allegations of fraudulent bankruptcy. To ensure business continuity and protect employment, the judiciary has ordered the seizure of company shares and the five restaurants, placing them under the management of a judicial administrator.
The authorities are continuing their efforts to dismantle such illicit networks and ensure fair labor practices and tax compliance within the restaurant industry in Rome.
