Operation "Moby Dick": A Major Strike Against Organized Financial Crime

 The European Public Prosecutor's Office has orchestrated what is considered the largest operation ever against organized crime specializing in tax fraud. Dubbed "Moby Dick," the operation has led to 47 restrictive measures and the seizure of assets worth over 520 million euros across various countries, including Italy. The investigation involved several EU member states and implicated figures connected to both the Mafia and the Camorra. The scheme utilized was a VAT carousel fraud system that, over a few years, issued fake invoices amounting to 1.3 billion euros.

The "Moby Dick" Investigation: International Fraud and Money Laundering This operation, named "Moby Dick" to highlight the scale and complexity of the investigation, was coordinated by the European Public Prosecutor’s Office with support from Italian and foreign law enforcement agencies. The investigation targeted a transnational organization involved in VAT evasion in the tech product trade and the laundering of illicit profits, all conducted with mafia-like methods. A total of 47 precautionary measures were issued, including 34 detentions and 9 house arrests, along with 4 interdictions.

The Carousel Fraud System The fraud was executed through a VAT carousel system that exploits European regulations exempting intra-community operations from VAT. In this scheme, a shell company, or "missing trader," would purchase electronic products from a European supplier without paying VAT and then sell them in the Italian market while charging VAT. However, the missing trader does not remit the VAT collected, pocketing it as "profit." To obscure tracking, the goods move through various intermediary companies (buffers) before reaching the final seller (broker), who sells them on the national market or reintroduces them into the European circuit, repeating the cycle.

Key Suspects and Mafia Links Key suspects include individuals such as Rodolphe Ballaera, born in Belgium of Sicilian origins, Paolo Falavigna from Milan, Antonio Lo Manto, a known member of the Brancaccio Mafia clan, Giovanni Nuvoletta from the Camorra in Naples, Cosimo Marullo, and Marco Mezzatesta. According to investigators, the organization provided financial support to various Mafia groups, including the Camorra's Di Lauro clan in Scampia and Nuvoletta in Marano di Napoli. The Cosa Nostra liaisons were Antonio Lo Manto and Pietro Conoscenti, while for the Camorra, operatives like Salvatore Tamburrino, Vincenzo Perrillo, and Espedito Colonna managed the equilibrium in business dealings and resolved conflicts among associates, ensuring smooth and coordinated management.

Arrests and International Warrants The warrants included seven individuals for whom European arrest warrants have been issued and executed in the Czech Republic, Netherlands, Spain, and Bulgaria. The charges span organized criminal association for tax fraud and money laundering offenses related to "carousel fraud" in the trade of technological products.

Multi-Million Euro Seizures and Property The court ordered the precautionary seizure of assets worth over 520 million euros, representing the total profit from the tax frauds. Seized assets include luxury real estates across Italy, such as residential complexes valued over 10 million euros in Cefalù, Sicily, and other properties in Milan, Chiavari, Bellano, and Cinisello Balsamo.

Luxury Dealings The organized crime had a key role in smoothing conflicts among the involved parties, even contemplating the use of weapons if necessary, and investing substantial amounts of illicit money. One of the main laundering areas identified by investigators is Cefalù, a tourist hotspot in Palermo province. Here, illegal funds were laundered through the purchase of high-value real estate by Italian companies owned entirely by companies based in foreign territories such as Singapore and Switzerland.

Searches and Wiretaps Over 160 searches were conducted across 30 Italian provinces, with assistance from the Guardia di Finanza's canine units specialized in cash detection. Investigative efforts also extended abroad, including in Spain, Luxembourg, the Czech Republic, Slovakia, Croatia, Bulgaria, Cyprus, the Netherlands, and non-EU countries like Switzerland and the United Arab Emirates.

Economic and Market Impact The operation's scale, involving 200 individuals and over 400 companies, highlights the extensive economic damage caused by tax frauds and their impact on fair competition. According to the European Public Prosecutor's Office, carousel frauds distort the market by enabling the purchase of goods at competitive prices and depriving significant resources from the European treasury.

Commitment of the European Public Prosecutor's Office The "Moby Dick" operation marks one of the most significant actions by the European Public Prosecutor's Office against organized economic crime. The collaboration between Italian law enforcement and their counterparts in other European countries has unveiled an international fraud network extending well beyond national borders, demonstrating the effectiveness of transnational cooperation in combating economic crime.