On November 14, 2024, Italian authorities arrested 43 individuals and seized goods valued at €520 million as part of a crackdown on a mafia-linked VAT fraud ring.

The operation, codenamed 'Moby Dick', involved extensive investigations led by the European Public Prosecutor's Office (EPPO) in Milan and Palermo, with over 160 searches conducted across more than 10 countries.

The investigation targets a VAT fraud network linked to organized crime, specifically the Neapolitan Camorra and the Sicilian Cosa Nostra, with suspects charged with cross-border VAT fraud and money laundering.

Laura Kövesi, head of the EPPO, emphasized the serious threat posed by organized crime to the EU budget, noting this case as a significant breakthrough in exposing such networks.

The investigation revealed fraudulent invoices totaling €1.3 billion, highlighting the scale of the criminal activities involved.

In addition to the arrests, the EPPO executed a freezing order exceeding €520 million to recover damages to the EU and national budgets, including the freezing of 129 bank accounts and the seizure of 192 real estate properties.

Further raids and seizures occurred in Luxembourg, Slovakia, Croatia, Cyprus, Switzerland, and the UAE, showcasing the extensive reach of the investigation.

Carousel fraud, the type of VAT fraud being investigated, is estimated to cost the EU around €50 billion annually, involving multiple companies across at least two member states.

Judicial sources indicated that the operation led to the seizure of assets valued at €520 million, with a Milan judge ordering preventive measures due to aggravating circumstances related to mafia associations.

The European Commission's report in March estimated that MTIC fraud costs EU member states between €500 and €100 billion annually, underscoring the scale of the issue.

Italian Prime Minister Giorgia Meloni praised the operation, underscoring Italy's commitment to combatting tax evasion, which costs the country about €80 billion annually.

This investigation reflects significant efforts by law enforcement to combat organized crime and tax evasion in Europe, addressing broader issues of criminal influence in countries with weaker legal systems.