Milan Financial Police Uncover €116 Million Tax Fraud and Money Laundering Ring
Milan, May 15 – The Milan Financial Police, in conjunction with prosecutors Eugenio Fusco, Milda Milli, and Andrea Zanoncelli, have dismantled a sophisticated tax fraud and money laundering operation estimated at €116 million. The investigation, which culminated in 21 requests for arrest warrants and the seizure of €1.2 million in cash, targeted two Brescia-based metal trading companies.
The intricate scheme involved two companies from Brescia that allegedly ordered €17 million and €7.5 million in bank transfers to what appeared to be Chinese suppliers. However, these suppliers, despite issuing invoices for these payments, were found to be completely devoid of any operational or commercial structure. Furthermore, the payments were directed to bank accounts registered to different Chinese nationals, further raising suspicions.
The Mechanism of Fraud: Fictitious Invoices and Cash Kickbacks
Investigators discovered that between January 30, 2021, and June 31, 2024, a total of €116 million in false invoices were issued. By receiving these fictitious invoices, the Brescia companies were able to declare false assets and liabilities amounting to €99 million. This allowed them to evade significant tax obligations.
The Financial Police also identified an additional tax evasion of €62 million due to undeclared income and €10 million for inaccurate declarations. The illicit mechanism was so well-oiled that during searches in Milan and Brescia, authorities found more than €1.2 million in ready cash, indicating a readily available supply for the scheme’s operations.
The investigation revealed that the Italian company representatives would meet with Chinese nationals to receive cash kickbacks, a portion of the money they had initially transferred. This crucial aspect of the scheme was documented through surveillance and video recordings, providing strong evidence against the perpetrators.
Arrests and Further Investigations
The operation led to searches of 28 individuals and 9 companies. Preventive interrogations, presided over by investigating judge Tiziana Landoni, are scheduled to commence next Monday to determine the pre-trial detention measures requested by the Public Prosecutor’s Office for criminal association, tax offenses, and money laundering.
This case highlights a recurring pattern where, although the money laundering mechanism might be Chinese, the orchestrators, or the “launders,” are often Italian. The scale of the fraud and the amount of cash seized underscore the profitability and sophistication of such illicit financial activities.
The ongoing investigation aims to fully uncover the extent of the network and bring all responsible parties to justice. Authorities are committed to combating financial crimes that undermine the integrity of the economic system and deprive the state of much-needed revenue.
Source: https://milano.corriere.it/notizie/cronaca/26_maggio_15/milano-reati-fiscali-e-riciclaggio-perquisizioni-in-9-societa-lavatrici-di-denaro-trovati-contanti-per-un-milione-e-200-mila-euro-9ffa156e-c882-40d2-8241-7012f064axlk.shtml
