Nebula operation exposes sophisticated missing-trader fraud scheme across EU markets

28 May 2026 , 18:15

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Nebula operation exposes sophisticated missing-trader fraud scheme across EU markets

At the request of the European Public Prosecutor’s Office (EPPO) in Venice (Italy), the Italian Financial Police (Guardia di Finanza) of Verona, supported by officers in Naples, arrested seven suspects believed to be members and facilitators of an organized criminal group involved in a large-scale VAT fraud scheme linked to the wholesale trade of hygiene products and electronic goods, code-named Nebula.

The arrests follow a major operation carried out in November 2025, led by the EPPO offices in Venice and Zagreb (Croatia), which uncovered a criminal network responsible for an estimated damage of over €78 million in unpaid VAT across several EU Member States. 

The measures executed today concern the suspected leaders of the criminal organization and their close associates, who needed to be interrogated by the judge prior to the issuance of the arrest warrants, as foreseen by the recently amended Italian code of criminal procedure. Two suspects identified as the organizers of the scheme were remanded in custody, while four additional suspects were placed under house arrest. Two other suspects were subjected to alternative preventive measures, including reporting obligations and a ban on carrying out business activities.

The judge’s arrest warrants were carried out only against seven suspects since the eighth had left the country in the meantime. 

According to the investigation, the criminal organization with members in Croatia and Italy, operated a network of companies, which purchased hygiene and household products exempt from VAT from Italian wholesalers before reselling them, only formally, to missing trader companies based in the Naples area. These companies then sold the goods onward without paying the VAT due.

The investigation further revealed that the foreign shell companies, as well as the companies involved at different stages of the fraudulent chain, were allegedly managed from Italy by the criminal organization. To conceal the scheme and hinder the investigations, the suspects are believed to have continuously replaced the companies involved and registered them in the names of strawmen with no real assets.

The fictitious supply chain, involving multiple cross-border transactions, enabled the criminal group to evade more than €33 million in VAT only in Italy, and to sell products on the Italian market at artificially low and highly competitive prices.

All persons concerned are presumed innocent until proven guilty in the competent Italian and Croatian courts of law.

The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.

Elizabeth Baker

Technology & Business Editor