Italian police find large oil trading tax evasion scam run by Mafia

Italian authorities have seized €140 million ($164 million) in assets as part of a large-scale investigation into an oil trade tax evasion scheme run by the Calabrian Mafia, the Guardia di Finanza financial police said on Thursday.

The confiscations took place in Italy and Germany. Five companies are suspected of involvement in a fraud network run by the ’Ndrangheta, which has its base in southern Italy but operates internationally.

The "Andrea Doria" operation coordinated by Calabrian anti-mafia prosecutors exposed a sophisticated oil trading fraud scheme, in which front companies and fake business ties allowed companies to evade value-added and consumption taxes.

Fraudulent statements allowing tax-free purchases were used among other things.

The criminal organization is reported to have run the entire oil marketing chain up to final distribution on the street. Shell companies and local real estate agents were involved.

The Italian authorities confiscated 80 properties across Italy and 28 businesses, three of them based in Germany. The companies were involved in oil trading, transport and property leasing.

More than 80 vehicles, several luxury watches and around €1 million in cash were seized.