Italy's mafia shifts focus from bloodshed to financial fraud

Italy's mafia, once notorious for its involvement in violent crimes, has turned its attention to white-collar criminal activities, according to senior Italian prosecutors. 

The transition is fueled by the billions of euros in post-Covid recovery funds circulating in the country, which provide ample opportunities for fraudsters.

Prime Minister Giorgia Meloni's government recently uncovered €16 billion ($17 billion) worth of fraud linked to home improvement schemes, shedding light on the scale of financial misconduct. 

While not all of the fraudulent activities are orchestrated by organized crime groups, prosecutors suspect significant mob involvement in many cases.

"The 'Ndrangheta operates throughout the temporary work supply sector, from transport to cleaning," said Gaetano Paci, chief prosecutor in the northern city Reggio Emilia. "By not paying taxes and contributions, it can offer services at slashed prices."

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The European Public Prosecutor's Office (EPPO) warned of widespread financial wrongdoing across the EU, with Italy accounting for almost a third of the cases. 

In response, prosecutors and police chiefs are intensifying efforts to combat mob involvement in Italy's business sector.

Barbara Sargenti, an official in the National Anti-Mafia and Anti-Terrorism Prosecutor's Office said: "While there is no official estimate of the scale of organized crime's involvement in financial crimes in Italy, two of the prosecutors estimated it was billions of euros each year - only a fraction of which had been uncovered."

Despite the lucrative nature of financial crimes, the penalties remain relatively light compared to drug-related offenses. This disparity incentivizes criminals to exploit legal loopholes and engage in fraudulent activities.

Recent investigations have uncovered sophisticated schemes involving fake invoices and bankruptcies orchestrated by organized crime groups. Companies, including international giants like UPS Italia and DB Schenker, have been implicated in outsourcing logistics to cooperatives linked to the mafia.

The prevalence of financial crimes poses a significant challenge to law enforcement agencies, exacerbated by limitations on prosecuting white-collar offenses. Weak regulations and lenient penalties have allowed offenders to evade accountability, undermining efforts to combat organized crime in Italy.

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