(Luxembourg, 7 October 2026) – At the request of the European Public Prosecutor’s Office (EPPO) in Turin (Italy), eight suspects have been placed in pre-trial detention and three under house arrest, in an investigation targeting an organised crime group suspected of large-scale VAT fraud in the trade of plastics products. Law enforcement also executed an order to seize assets worth up to €25 million.
The investigative measures, ordered by the judge for preliminary investigations at the Court of Turin, were carried out on Tuesday by 120 officers of the Italian Financial Police (Guardia di Finanza) from Turin and Ancona, with additional support from units in Piedmont, Marche, Veneto, Lombardy, Apulia and Calabria. Searches were also carried out at the suspects’ homes and offices using ‘cash dogs’ – canine units specialised in searching for currency.
As previously reported, the investigation uncovered a VAT fraud scheme based in the Marche region and involving a network of shell companies that acted as intermediaries in the sale of industrial plastics products, located in Italy, Austria, Bulgaria, Czechia, Hungary, Italy and Romania. These companies, often lacking any real business activity, systematically failed to declare and pay VAT.
The evidence shows that, between 2018 and 2023, the suspects fraudulently issued and used invoices for non-existent transactions totalling €500 million, resulting in a VAT evasion of around €100 million.
The fraudulent setup also allowed the suspects to sell products at prices significantly below market value, distorting competition and harming legitimate businesses in the sector. Meanwhile, the actual recipients of the goods – Italian companies in Piedmont, Lombardy, and Tuscany – used the plastics products in their industrial processes.
Earlier in this investigation, ten suspects were convicted by the Tribunal of Nola for VAT fraud, the use and issuance of false invoices and related tax crimes. Two other defendants were also convicted on 21 September 2026.
Over 50 individuals are under investigation for alleged crimes, including participation in a criminal organisation, VAT fraud, issuing and using false invoices, failure to file tax declarations, tax evasion, and unlawful tax compensation.
The investigation continues to identify further links in the fraudulent network and freeze additional assets to cover the estimated illicit proceeds of crime.
All persons concerned are presumed innocent until proven guilty in the competent Italian courts of law.
The 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.
- Publication date
- 7 October 2026
- Author
- European Public Prosecutor’s Office