Massive Tax Fraud and Money Laundering Scheme Uncovered in Naples

The Public Prosecutor's Office of North Naples has requested the indictment of 43 people accused of tax fraud and money laundering, specifically for using a network of fictitious companies, also called "missing traders" or "shell companies", which made purchases from entities operating within the EU of various products, including lubricating oils and cars or car parts, without paying VAT and issuing false invoices. The Guardia di Finanza of Caserta, which conducted the investigations on behalf of the Prosecutor's Office, has ascertained a tax fraud of 18 million euros, with the laundered money being reinvested in legitimate activities. The investigation began with the seizure by the Guardia di Finanza of 90 tons of lubricating oil in a warehouse in Castel Volturno; the product was from a shell company, existing only on paper and without any corporate organization, purchased from a company in an EU country without any authorization; the product was then resold in the black market, and the illicit proceeds, about 12 million euros, were reinvested in two companies in Campania. The investigators have ascertained the use of fictitious companies that were passed off as regular exporters, and which sold cars and spare parts without VAT to the Italian companies involved in the illicit trafficking, which thus purchased the goods at competitive prices and with a VAT credit. The evasion of the value-added tax was ascertained to be around 4 million euros.