Luxembourg at the centre of a major operation by the European Public Prosecutor's Office
Luxtoday
The European Public Prosecutor's Office (EPPO) is conducting a major investigation called "Moby Dick" aimed at uncovering a €520 million VAT fraud. The case involves the activities of several mafia groups and covers 195 suspects and more than 400 companies in 10 EU countries, including Italy, Luxembourg, Spain, the Czech Republic and others.
Fraud Scheme:
- The criminals used a so-called "roundabout" VAT scheme, taking advantage of EU rules that exempt cross-border transactions between member states from VAT.
- Through fictitious companies in and outside the EU, they traded in electronics including AirPods and laptops, issuing fake invoices worth more than €1.3 billion.
- As a result, mafia structures received illegal tax refunds and used forceful methods to resolve internal conflicts.
European chief prosecutor Laura Kovesi said the Moby Dick investigation demonstrates the confluence of two types of underworld: organised crime related to drugs and human trafficking, and white-collar crime such as money laundering and corruption.
The operation was carried out by the Italian authorities (Guardia di Finanza, Polizia di Stato) in co-operation with Europol, as well as law enforcement agencies of Spain, Czech Republic, Bulgaria, Luxembourg and other countries. Forty-three suspects were arrested and seven international arrest warrants were issued. 160 searches were carried out in and outside the EU, property and accounts worth over 520 million euros were frozen, including 192 properties, 44 cars and yachts. In Italy alone, 129 bank accounts were seized.
