What is the ‘Fuel Family’ investigation by the EPPO?

The ‘Fuel Family’ investigation is an EU-led probe targeting a criminal network accused of large-scale VAT fraud involving fuel imports, fake invoicing, and money laundering.

How much in assets has the EPPO seized in the ‘Fuel Family’ case?

The European Public Prosecutor’s Office seized assets worth €20 million, including over 150 properties such as resorts, warehouses, and land across Italy.

How did the criminal group carry out the VAT fraud?

The group allegedly used over 40 missing trader companies to import fuel VAT-free and issued fake invoices worth over €1 billion to evade nearly €260 million in VAT.

What countries were involved in the fraudulent fuel imports?

Fuel was imported from Croatia, Slovenia, and other European countries using shell companies, enabling the group to undercut market prices in Italy.

Is money laundering linked to the ‘Fuel Family’ VAT fraud?

Yes, the investigation uncovered over €35 million laundered through bank accounts in Hungary and Romania, with funds later withdrawn and delivered in cash.

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

Q: Are the criminal proceedings in the ‘Fuel Family’ case concluded?

No, the proceedings are still ongoing, and all suspects are presumed innocent until proven guilty, as per EU and Italian legal standards.

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