Edited by Sergio Silvestri

The phenomenon of shell companies is increasingly widespread in Italy, issuing invoices ("papers") for non-existent transactions. Law enforcement efforts are also increasing: two recent operations by the Guardia di Finanza (Financial Police). In one, dubbed "Fast & Clean" due to the speed with which the crimes were carried out and the money laundered, officers from the Ancona Provincial Command uncovered a network of companies that issued false invoices from January 2022 to February 2023, amounting to €150 million. These invoices were used by over 600 companies in Italy, including some in the construction sector, which were granted tax credits from building incentives. VAT evasion amounted to €33 million, potentially resulting in illegal direct tax savings of over €28 million, with the illicit proceeds being laundered in China. During the investigation, a statement from the Guardia di Finanza (Italian Finance Police) states, a Chinese woman was placed under house arrest and 18 people (three Italians and 15 Chinese) were charged with issuing and using invoices for non-existent transactions, inaccurate and omitted tax returns, fraudulent tax evasion, and self-laundering. A precautionary seizure was carried out on €33 million in bank accounts, luxury cars, a textile factory, cash, watches, jewelry, and nine properties with a total value of over €15 million. Fifteen businesses were also placed under preventive seizure and ordered to be dissolved to prevent the continuation of the illegal activity.

In the second operation, conducted by the Guardia di Finanza (Financial Police) of the Reggio Emilia Provincial Command and the State Police, a precautionary seizure, issued by the investigating judge of the Reggio Emilia Court, amounted to €11.5 million against 87 user companies, headquartered outside the Reggio Emilia area, and their legal representatives. The searches, aimed at finding cash, were carried out by the Guardia di Finanza (Fiamme Gialle) and police officers with the assistance of cash-dog units from the Guardia di Finanza.

 The "Consequence" investigation is the natural progression of a tranche of the "Billions" operation, which in mid-2020 dismantled a criminal syndicate committed tax crimes (through the involvement of 28 shell companies), money laundering, and fraudulent bankruptcy involving an illicit turnover of over €240 million. Sixty-one people were convicted in the first instance for that investigation.

The syndicate, operating in the Reggio Emilia area but with a national reach, investigators explain, specialized in professionally and massively providing illegal financial services to companies operating in many Italian regions—particularly through the issuance of invoices for non-existent transactions—and "in ensuring the related and collateral activities of monetizing the funds evaded tax control, or moving the same funds in such a way as to give the appearance, at least in terms of payment, of the reality of the transactions and to allow the recipient of the false invoices to secure illicit profits characterized by tax savings."

Source: https://www.gdf.gov.it/it