Editorial Staff of the Italian Anti-Money Laundering School

In recent weeks, the Verona Guardia di Finanza conducted a significant operation, culminating in a house arrest order for four individuals and the precautionary seizure of assets worth over €3 million. This initiative was promoted by the local Public Prosecutor's Office and authorized by the investigating judge of the Verona Court.

The investigation was conducted by the Economic and Financial Police Unit of Verona and focused on a consortium operating in the cleaning, porterage, logistics, and packaging sectors, affiliated with several cooperatives. Collaboration between the Guardia di Finanza and the Public Prosecutor's Office uncovered a criminal organization involved in the issuance and use of invoices for non-existent transactions, with a total turnover of over €62 million between 2018 and 2021.

During the investigation, the Guardia di Finanza uncovered a criminal organization that exploited labor formally employed by so-called "spurious cooperatives." These cooperatives operated as fictitious entities, used for tax and social security evasion. The individuals arrested were in charge of these spurious cooperatives and controlled the entire corporate structure.

The criminal organization followed a simple modus operandi. The Consortium signed contracts with public and private clients at extremely competitive prices. The spurious cooperatives performed the work but failed to comply with their tax and social security obligations. Instead, they issued invoices to the Consortium, allowing it to benefit from VAT credits without remitting the VAT due to the tax authorities. The Consortium only made partial payments to the cooperatives, which in turn did not seek to recover their debts from the Consortium. Furthermore, the workers were directed by the client rather than by the cooperatives themselves.

As a result, these cooperatives became puppet companies serving the Consortium and the criminal organization. Not only did they supply labor illegally (since labor was only available through authorized temporary employment agencies), but they were also exploited to avoid paying taxes and contributions. This tax evasion constituted the true profit of this criminal activity.

In addition to the four people under house arrest and the Consortium, which has been charged with several legal violations for the years 2020 and 2021, twelve other people are under investigation, including a Verona accountant who handled the accounting for the Consortium and the cooperatives involved. However, it is important to note that these precautionary measures are based on provisional charges and will have to be proven at trial and in subsequent court proceedings.

The criminal liability of the suspects will be established only after a trial with a final criminal sentence, and the presumption of innocence provided for by the Constitution remains in effect. Today's operation demonstrates the Verona Guardia di Finanza's ongoing commitment to combating unfair competition in the cooperative sector, ensuring the protection of honest businesses and workers.

Fsource: gdf.gov.it