Moby Dick ringleader and five accomplices convicted over €520m mafia-linked VAT fraud empire
Six individuals, including one ringleader, have been convicted by the Court of Milan (Italy) for organizing and participating in a transnational criminal association, VAT fraud, and money laundering, following an investigation by the European Public Prosecutor’s Office (EPPO) in Milan and Palermo (Italy), code-named ‘Moby Dick’. The judge also ordered the confiscation of over €300 million and confirmed the aggravated circumstances arising from the criminal syndicate’s aiding and abetting of a mafia association and use of mafia methods.
These are the most recent convictions in this investigation, following the first convictions announced in February.
As previously reported, investigation ‘Moby Dick’ concerns a criminal syndicate responsible for a VAT carousel fraud scheme resulting in €520 million in losses to the EU and national budgets. Between 2020 and 2023, the group issued invoices for the sale of AirPods, laptops, and other electronic goods with a total value of more than €1.3 billion.
One of the individuals now convicted was one of the ringleaders of the criminal syndicate and had been at large for six months after evading arrest in Prague (Czechia) in November 2024. He surrendered in May 2025 and has remained subject to judicial restrictions since then.
Another defendant now convicted was responsible for receiving money from a Camorra clan and investing it in the criminal syndicate, which orchestrated this huge tax evasion scheme. The money channeled into the syndicate by the mafia not only increased its profits but also served to launder its illicit proceeds.
“These verdicts confirm what the EPPO has been warning about for years: mafia organizations are investing in VAT fraud as a vehicle to launder their criminal proceeds. They are causing massive damages to national and EU budgets. The fight against VAT fraud must become a priority for the EU and a cornerstone of the new EU antifraud architecture”, said European Chief Prosecutor Laura Kövesi.
Prison sentences and over €300 million confiscation
On 11 September 2026, the judge for the preliminary hearing at the Court of Milan handed down the convictions in these proceedings, involving six defendants. All had requested to be tried under the abbreviated procedure, benefiting from a reduction in sentence.
The six defendants received prison sentences ranging from four years to seven years and two months, following a one-third reduction under the abbreviated procedure. The sentences also included accessory penalties, with some defendants permanently barred from holding public office and legally incapacitated for the duration of their sentences, while others were barred from public office for five years. One defendant was additionally disqualified from operating a commercial enterprise and holding executive positions in companies.
In addition, the judge ordered the confiscation of over €300 million in profits deriving from the criminal conduct, as well as real estate and company shares owned by the defendants.
The judge accepted almost in its entirety the prosecution’s reconstruction of the criminal organization, structured in federated different operational cells and operating in numerous European and third countries. The syndicate operated through a complex network of domestic and foreign companies – including missing traders, brokers, and conduits.
The overall proceedings in this investigation involve more than 400 individuals and legal entities as suspects. Some of those affected by seizure orders have already settled their debts with the tax authorities following the investigation.
The investigation results from two lines of proceedings conducted by the Italian Financial Police (Guardia di Finanza) of Varese and Milan and from the Italian State Police (Polizia di Stato) - Palermo Mobile Squad and SISCO -, together with the Central Operational Service and the Palermo PEF Unit. The two proceedings were subsequently combined, led by the EPPO’s office in Milan and Palermo.
The decision was issued at first instance and may still be appealed.
The European Public Prosecutor’s Office (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.
Politics Editor
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