European Public Prosecutor’s Office: 10 convicted in Italy over 100 million euro VAT fraud in plastics trade

Brussels – The European Public Prosecutor’s Office (EPPO) in Turin obtained the conviction of ten defendants by the Court of Nola in a VAT fraud case relating to the trade in plastic products. The defendants have been found guilty of offences including VAT fraud, the use and issuance of false invoices, and related tax crimes. The court-imposed prison sentences range from three years and four months to four years and six months and are still subject to appeal. The court has also ordered the confiscation of assets already seized during the investigation, including cash, financial assets, and luxury goods, with a total value exceeding 1.1 million euros. Confiscation orders have also been issued against the convicted individuals and companies for the proceeds of the offences.

 The investigation uncovered a sophisticated VAT fraud scheme operating between 2018 and 2023 through a network of shell companies involved in the trade of industrial plastic products. According to the probe, the criminal scheme involved the issuance and use of invoices for non-existent transactions totalling approximately 500 million euros, resulting in an estimated VAT loss of around 100 million euros. The fraudulent scheme used intermediary companies that systematically failed to meet their VAT obligations and concealed the actual flow of goods and funds through a chain of fictitious transactions. 

The investigation, supported by Europol and carried out by the Turin branch of the Guardia di Finanza, led in March 2025 to the arrest of 13 suspects and the seizure of assets in Belgium, Hungary, Italy, Latvia, and Slovakia. Proceedings against two further defendants before the Court of Nola are now underway.