The European Public Prosecutor’s Office in Turin has obtained the conviction of ten defendants by the Tribunal of Nola in a VAT fraud case involving the trade in plastics products, according to an announcement on 22 July 2026. The court found the defendants guilty of offences including VAT fraud, the use and issuance of false invoices, and related tax crimes, handing down prison sentences ranging from three years and four months to four years and six months.
Investigation Details and Financial Scope
According to the European Public Prosecutor’s Office, the sophisticated VAT fraud scheme operated between 2018 and 2023 through a network of shell companies involved in the trade of industrial plastics products. Investigators found that the criminal scheme relied on the issuance and use of invoices for non-existent transactions amounting to approximately €500 million. This activity resulted in an estimated VAT loss of around €100 million.
The fraudulent structure utilized intermediary companies that systematically failed to meet their VAT obligations. These entities concealed the true flow of goods and funds through a complex chain of fictitious transactions.
Seizures and International Law Enforcement Support
The investigation received support from Europol and was carried out by the Italian Financial Police, known as the Guardia di Finanza, of Turin. Law enforcement actions in March 2025 led to the arrest of 13 suspects and the seizure of assets across Belgium, Hungary, Italy, Latvia, and Slovakia.
In the recent ruling, the Tribunal of Nola ordered the confiscation of assets already seized during the investigation, which include cash, financial assets, and luxury goods with a total value exceeding €1.1 million. Furthermore, the court issued additional confiscation orders against the convicted individuals and companies to recover the proceeds of the offences.
Did You Know? The European Public Prosecutor’s Office is the independent public prosecution office of the European Union responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.
Legal Status and Potential Next Steps
The prison sentences handed down by the Tribunal of Nola are still subject to appeal. Legal representatives for the defendants could choose to challenge the convictions in a higher court.
Meanwhile, judicial proceedings are far from over for all participants in the alleged network. Proceedings against two additional defendants are currently ongoing before the Tribunal of Nola.
Frequently Asked Questions
What crimes were the ten defendants convicted of?
The defendants were found guilty of VAT fraud, the use and issuance of false invoices, and related tax crimes.
What prison sentences did the court impose?
The Tribunal of Nola imposed prison sentences ranging from three years and four months to four years and six months, which remain subject to appeal.
Which agencies carried out the underlying investigation?
The investigation was carried out by the Italian Financial Police of Turin with support from Europol, under the direction of the European Public Prosecutor’s Office.
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