Fraud with European funds, seizure of luxury cars and villas in Italy

Twenty-two people have been arrested, luxury cars and villas confiscated as part of a European investigation into fraud worth 600 million euros affecting the Italian recovery plan, the European prosecutor’s office announced on Thursday and the Italian police. Dozens of searches were carried out in Italy, Austria, Romania and Slovakia. Eight of the arrested suspects were placed in preventive detention, the other 14 being placed under house arrest.

600 million euros

One of them, an accountant, was banned from carrying out his professional activity, the European Attorney General’s Office said. The targeted organization is suspected of having orchestrated, between 2021 and 2023, a fraud aimed at diverting funds intended for Italy as part of the post-Covid European recovery plan, according to the European prosecutor’s office. The suspects allegedly applied to receive subsidies to support the digitalization, innovation and competitiveness of small and medium-sized businesses, which were in reality fictitious.

They were allegedly helped by accountants, service providers and notaries, and are suspected of having transferred the funds received to bank accounts in Austria, Romania and Slovakia. In Italy, the Venice financial police froze assets worth a total of 600 million euros, following a court order. These include “sumptuous apartments and villas, large sums in cryptocurrencies, high-end watches (Rolex), jewelry (Cartier), gold and luxury cars (including Lamborghini Urus, Porsche Panamera and Audi Q8)”, detailed the Venice financial police.

Some 150 police officers, aided by dogs, carried out searches in different Italian regions. The EU adopted a recovery plan of more than 800 billion euros in 2020 to help the 27 member states cope with the crisis caused by the pandemic, which is financed by a common loan. Italy is the first beneficiary. Its recovery plan amounts to 194.4 billion euros (71.8 billion in grants and 122.6 billion in loans).