Authorities in Europe have dismantled a colossal €520 million VAT fraud scheme involving mafia organizations such as the Camorra. The fraud used “carousel schemes,” exploiting EU tax rules for cross-border transactions. Shell companies and fake invoices allowed the network to evade taxes, funneling profits into luxury properties, including resorts in Italy’s Cefalù, and into commercial real estate in Milan and other regions.
Arrests occurred in Italy, Spain, the Netherlands, Luxembourg, the Czech Republic, Slovakia, Croatia, Bulgaria, Cyprus, Switzerland, and the UAE. Over 160 raids were conducted, targeting 200 individuals and 400 companies. Investigators found that mafia methods were employed to enforce the scheme and resolve internal disputes. Assets seized included properties worth €10 million and other valuable items.
