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Italy: €8.6m fraud network uncovered, with links to slot revenues

Authorities allege the criminal group ran a false invoicing scheme generating illicit tax advantages and circulating cash through a parallel financial system.

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Key Points
Financial Police operations across Bergamo and Milan led to the seizure of €8.6m and investigations involving 41 individuals
A criminal network was linked to false invoicing, tax crimes, extortion and money laundering
Investigators say parts of the funds are linked to slot machine revenues

A major Financial Police operation across Bergamo and Milan has uncovered a suspected criminal network linked to false invoicing, tax crimes, extortion and money laundering, with parts of the scheme also tied to cash generated from slot machine venues.

Law enforcement carried out precautionary measures and asset seizures worth €8.6m ($10.1m) targeting 21 individuals and nine companies.

The investigation, coordinated by the Public Prosecutor’s Office in Bergamo and led by the Financial Police unit in Grumello del Monte, involves 41 individuals.

At the centre of the case is a suspected organisation allegedly led by a Chinese couple, who are said to have managed a network of sole proprietorships in the garment manufacturing sector.

Authorities allege the proprietorships were used to issue invoices for non-existent transactions to businesses mainly based in the provinces of Bergamo and Brescia. This allowed client companies to obtain illicit tax advantages by reducing their tax liabilities through false documentation.

Investigators also say the scheme involved the return of cash to participating companies, with part of the funds allegedly retained by the organisers as payment for the services, creating a parallel financial circuit.

The funds are also believed to have originated in part from slot machine venues and from individuals involved in money laundering activity. Charges include money laundering of more than €3m, illegal labour supply and unauthorised financial activity.

Investigations are ongoing to clarify the full network of financial relationships and the responsibility of those involved, with efforts now focused on tracing money flows and determining whether the scheme extends further and involves additional businesses.

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