(Luxembourg, 27 May 2025) – A suspected ringleader in the cross-border investigation into a €520 million VAT fraud scheme, code-named ‘Moby Dick’, has turned himself in and was detained yesterday in Milan (Italy) at the request of the European Public Prosecutor’s Office (EPPO) in Milan and Palermo. The individual had evaded arrest in Prague (Czechia) in November 2024, prior to an action targeting the international criminal ring, carried out by the EPPO, and had been at large for six months.
The suspect landed at Milan Malpensa airport from Tirana (Albania) and surrendered to the police units dedicated to the EPPO (Italian Guardia di Finanza and Polizia di Stato). He is suspected of criminal association, aggravated by mafia methods and aiding and abetting mafia clans, money laundering and committing a series of tax offences relating to intra-community VAT fraud.
During the action carried out by the EPPO in November 2024 in more than 10 countries, 43 suspects had already been arrested.
According to the investigation, people linked to several mafia clans invested into a criminal syndicate, which set up a highly profitable tax evasion scheme. Based on the evidence, the suspects established companies in Italy and other EU Member States, as well as in non-EU countries, in order to trade the goods through a fraudulent chain of missing traders – who would vanish without fulfilling their tax obligations. Other companies in the fraudulent chain would subsequently claim VAT reimbursements from the national tax authorities.
The level of complexity and efficiency of this criminal syndicate committing VAT carousel fraud is unprecedented. Between 2020 and 2023, it issued invoices for the sales of airpods, laptops and other electronic goods of more than €1.3 billion. Mafia methods also seem to have been used to settle conflicts that arose within the criminal syndicate between the members of the different criminal organisations.
A total of 195 individuals are being investigated, with more than 400 companies involved.
A freezing order of over €520 million is in execution to compensate the damage to the EU and the national budgets. In Italy alone, 129 bank accounts were frozen, and 192 real estate properties seized, together with 44 luxury cars and boats.
All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law.
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.