EU VAT Fraud Probe: ‘Fuel Family’ Assets Worth €20M Seized by EPPO

On April 23, the European Public Prosecutor’s Office (EPPO) in Bologna, Naples, and Rome announced that it had seized assets worth EUR 20 million, including a tourism resort and over 150 properties, in the course of an investigation action named ‘Fuel family’.

The investigation concerns a criminal group allegedly involved in systematic VAT evasion on imported fuel to the Italian market. This is the continuation of the investigation ‘Fuel Family’, which in March 2024 resulted in the dismantling of a criminal group involving 59 suspects and 13 companies.

Facts and Results of the Investigation

Acting on the request of the EPPO, the Italian Financial Police in Piacenza seized an exclusive bathing resort located in the province of Liguria, as well as six high-value properties in the province of Piacenza. Furthermore, 66 buildings and warehouses, and 77 plots of land, located in the provinces of Alessandria, Brindisi, Cuneo, Milan, Novara, Piacenza, and the municipality of Chiavari, were also seized in the action.

The investigation's results indicate that more than 40 missing trader companies were utilized to import fuel from suppliers based in Croatia, Slovenia, and other countries. Additionally, the central point of the criminal scheme is a criminal organization, whose members are linked by family ties.

Furthermore, during fraudulent activities, members of the criminal organization used invoices issued for simulated transactions worth over EUR 1 billion, with unpaid VAT amounting to nearly EUR 260 million.

In addition to VAT fraud and evasion, the members of the criminal organization are also suspected of money laundering. According to EEPO, more than EUR 35 million was laundered using bank accounts of companies located in Hungary and Romania, which was systematically withdrawn and handed over in cash to fraudsters.

By evading VAT, the criminal organization was able to resell fuel at significantly lower prices than its competitors, thereby gaining an unfair market advantage.

Conclusion

The criminal court proceedings are still ongoing, which means that all suspects are presumed innocent until proven guilty. However, the findings obtained by EPPO and other organizations involved in the investigation indicate the magnitude of the fraud. 

Moreover, the fact that the investigation is still ongoing also showcases the necessity of continuous work to detect fraud, determine its scope, and prevent further consequences for the state budget and adverse effects on the market.

Source: EPPO - Investigation ‘Fuel family’: EPPO seizes €20 million from criminal gang dedicated to VAT fraud, EPPO - Investigation ‘Fuel family’: EPPO busts criminal gang for €300 million VAT fraud