Luxury cars and villas confiscated… investigation into fraud involving European funds for Italy’s recovery plan

Some would try to take advantage of the Covid crisis to illegally fund their bank accounts. Twenty-two people have been arrested and luxury cars and villas seized as part of a European investigation into a 600 million euro fraud affecting Italy’s recovery plan, European prosecutors and Italian police announced Thursday.

Dozens of searches were carried out in Italy, Austria, Romania and Slovakia. Eight of the arrested suspects were remanded in custody, while the remaining 14 were placed under house arrest. One of them, an accountant, was banned from engaging in professional activities, the European Prosecutor General’s Office reported.

According to the European Prosecutor’s Office, the prosecuted organization is suspected of organizing a fraud between 2021 and 2023 aimed at diverting funds intended for Italy as part of Europe’s post-Covid recovery plan. The suspects allegedly applied for subsidies to support digitalization, innovation and competitiveness of SMEs, which were in fact fictitious. Accountants, service providers and notaries would help them. They are suspected of transferring the funds received to bank accounts in Austria, Romania and Slovakia.

Freeze of assets worth 600 million euros

In Italy, the financial police of Venice froze assets totaling 600 million euros by court order. These include “luxury apartments and villas, large amounts of cryptocurrency, luxury watches (Rolex), jewelry (Cartier), gold and luxury cars (including Lamborghini Urus, Porsche Panamera and Audi Q8),” Venice financial police explained.

About 150 police officers used dogs to conduct searches in various regions of Italy.

The EU adopted a recovery plan worth more than €800 billion in 2020 to help its 27 member states cope with the pandemic crisis, financed by common borrowing. Italy is the first beneficiary. The recovery plan amounts to 194.4 billion euros (71.8 billion grants and 122.6 billion loans).