Italian authorities uncover €200 million tax fraud scheme in Lombardy

The Guardia di Finanza in Lodi, operating under the “Green River” investigation coordinated by the local Procura, dismantled an organised crime network that laundered more than €200 million. The scheme relied on 41 shell “cartiere” companies managed from an anonymous office in Chiari (Brescia) to issue false invoices for client firms. Money was transferred abroad through virtual IBANs to China and then returned in cash to Italian entrepreneurs, with the network taking a 10 % commission. The operation also exploited bogus tax credits linked to the 2009 Abruzzo earthquake and the COVID‑19 pandemic to offset debts. Police executed eight personal precautionary measures, seized assets worth €31 million—including bank accounts, real estate, vehicles and luxury goods—and arrested 44 individuals, among them a chartered accountant who handled the group’s bookkeeping. “Cash dogs” from the financial police uncovered over €100 000 in hidden cash during searches.