Nicholas Watson
The European Public Prosecutor’s Office (EPPO) has announced the successful detention of 43 suspects involved in a massive VAT “carousel” fraud operation. The case, dubbed “Moby Dick,” resulted in over 520 million euros being frozen as the suspects face charges of manipulating VAT transactions across multiple EU states, including Bulgaria, Croatia, Czechia, and Slovakia.
The investigation, spearheaded by the EPPO offices in Milan and Palermo, included over 160 searches across more than 10 countries, targeting 195 individuals and 400 companies. The suspects, who allegedly used missing trader intra-community VAT fraud (MTIC), are believed to have orchestrated the fraudulent transfer of goods across borders while hiding VAT payments, defrauding EU budgets.
In Italy, 129 bank accounts were frozen, 192 properties seized, and 44 luxury cars and boats confiscated. The operation also involved mafia clans with ties to Italian crime families. EPPO Chief Laura Kovesi stated, “Moby Dick” is a critical investigation that highlights the merging of organized crime with white-collar fraud, showing how dangerous criminals infiltrate financial systems to launder money.
As of now, 43 suspects are in pre-trial detention, with seven European arrest warrants issued for individuals located in Bulgaria, Czechia, the Netherlands, Spain, and non-EU countries. Further investigations continue, with the EPPO taking swift action to halt these complex international crimes that cost EU states billions each year.
This operation highlights the growing role of the EPPO in combating cross-border fraud, ensuring justice for crimes that previously fell through the cracks of national jurisdictions.
