Milan court convicts six in mafia-linked €520m ‘Moby Dick’ VAT fraud

The record

On 11 September 2026, the preliminary hearing judge at the Court of Milan convicted six defendants in “Moby Dick”, one of the largest VAT fraud cases brought by the European Public Prosecutor’s Office (EPPO). The verdict was announced by the EPPO on 17 September and reported by OCCRP and Follow the Money.

According to the EPPO, those convicted include a ringleader and members of a criminal syndicate that caused about €520 million in losses to the EU and Italian budgets. The judge sentenced them to between four years and seven years and two months in prison and ordered the confiscation of more than €300 million in profits, as well as real estate and company shares.

Earbuds and laptops on paper

Prosecutors describe a classic VAT carousel. Between 2020 and 2023, the network issued invoices for AirPods, laptops and other electronics worth more than €1.3 billion. Goods were traded through chains of companies in Italy, other EU countries and beyond. “Missing traders” disappeared without paying the VAT they had charged, while other firms in the chain claimed refunds from the tax authorities.

The EPPO says the syndicate worked as federated cells, with brokers and conduit companies, across several European and non-European countries. Follow the Money reports that proceeds were moved through companies in Singapore, Hong Kong and Dubai and spent on villas, yachts and luxury watches, and that the case was partly built on wiretaps placed in a suspect’s home.

The mafia element

The judge confirmed aggravating circumstances for aiding a mafia association and using mafia methods. According to the EPPO, money from a Camorra clan was channelled into the scheme, both to increase its profits and to launder criminal proceeds. Earlier EPPO releases linked suspects to the Nuvoletta and Di Lauro clans. Follow the Money also reports involvement by Sicily’s Cosa Nostra.

“Mafia organisations are investing in VAT fraud as a vehicle to launder their criminal proceeds,” European Chief Prosecutor Laura Kövesi said.

How the case unfolded

In November 2024, the EPPO’s Milan and Palermo offices coordinated 160 searches in more than ten countries; 43 suspects were detained and a freezing order of over €520 million was issued. In Italy alone, 129 bank accounts were frozen and 192 properties and 44 luxury cars and boats were seized. One suspected ringleader escaped arrest in Prague. He spent six months at large before flying from Tirana to Milan Malpensa and surrendering in May 2025. Follow the Money identifies him as Belgian national Rodolphe Ballaera. Eleven further arrests followed in June 2025.

In February 2026, the same court convicted 20 defendants to a combined total of more than 70 years and confiscated about €40 million. The six convicted in September opted for the abbreviated procedure, which reduces sentences by one third. Some of those served with seizure orders have since settled their tax debts.

The responses

Neither the EPPO announcement nor the reporting by OCCRP and Follow the Money includes statements from the defendants or their lawyers. The Ledgers did not find a public response from the defence.

Questions that remain unanswered

How much of the €520 million will actually be recovered, given that part of the money was moved to Asia and the Gulf? What role did the mafia clans play beyond supplying capital? And when will the cases against the remaining suspects, who number more than 400 individuals and companies, reach court?

The September verdict is at first instance and may be appealed. All other suspects in the Moby Dick investigation are presumed innocent until proven guilty by an Italian court.

Based on reporting from: OCCRP · 17 September 2026; Follow the Money · 17 September 2026; EPPO · Ringleader and members of criminal syndicate found guilty · 17 September 2026; EPPO · First convictions: 20 defendants sentenced · 27 February 2026; EPPO · Eleven arrests in €520 million VAT fraud investigation · 25 June 2025; EPPO · Suspected ringleader turns himself in · 27 May 2025; EPPO · Mafia clans invest in €520 million VAT fraud · 14 November 2024.