(Luxembourg, 27 February 2026) – Twenty individuals have been convicted to more than 70 years of imprisonment for organising and participating in a criminal association and money laundering, following an investigation by the European Public Prosecutor’s Office (EPPO) in Milan and Palermo (Italy). These are the first verdicts in investigation “Moby Dick”, involving a criminal syndicate suspected of a VAT fraud scheme of more than half a billion euros.
As previously reported, investigation “Moby Dick” concerns a criminal syndicate believed to be responsible for a VAT fraud scheme amounting to more than €500 million. Between 2020 and 2023, it issued invoices for the sales of airpods, laptops and other electronic goods of more than €1.3 billion.
On 23 February 2026, the Preliminary Hearing Judge of the Court of Milan handed down convictions in one of the proceedings. Fifteen defendants, subject to precautionary measures, requested to be tried under the abbreviated procedure, benefiting from a reduction in sentence. Three additional defendants reached plea bargain agreements resulting in prison sentences. The convictions were issued for organising and participating in a criminal association, VAT fraud and money laundering. Two other defendants were already convicted in November 2024 for money laundering.
While these verdicts mark a significant step, other parts of the proceedings remain ongoing.
The judge accepted almost in its entirety the prosecution's reconstruction of the criminal organisation, structured in different operational cells and operating in numerous European and third countries. The syndicate operated through a complex network of domestic and foreign companies – including missing traders, brokers and conduits.
The judge sentenced the 15 defendants to a total of more than 55 years in prison, in addition to permanent disqualification from public office and a two-year temporary disqualification from engaging in business activities. The three defendants who plea bargained were also sentenced to prison terms.
In line with the new, more restrictive principles recently established by the Court of Cassation on the quantification of profits deriving from criminal conduct, the judge ordered the confiscation of assets worth approximately €30 million, corresponding to the criminal proceeds personally obtained by the convicted defendants.
Meanwhile, the ordinary trial continues before the Court of Milan for two additional defendants indicted following the conclusion of this part of the case. A further hearing is scheduled for March for six other defendants.
The overall proceedings involve more than 400 individuals and legal entities as suspects. Some of those affected by seizure orders have already settled their debts with the tax authorities following the investigation, paying approximately €20 million.
In November 2024, within the framework of the same investigation, the preliminary hearing judge in Milan had already issued a final judgment in simplified proceedings against two leading members of the criminal group for money laundering alone. As the defendants did not appeal, the judgment became final, sentencing them to a total of seven years and eight months of imprisonment and ordering the confiscation of assets worth approximately €10 million, including residential and real estate complexes.
The investigation results from two lines of proceedings conducted by the Italian Financial Police (Guardia di Finanza) of Varese and Milan and from the Italian State Police (Polizia di Stato)- Palermo Mobile Squad and SISCO- together with the Central Operational Service and the Palermo PEF Unit. The two proceedings were subsequently combined, led by the EPPO’s office in Milan and Palermo.
The European Public Prosecutor’s Office (EPPO) is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.