In an investigation led by the European Public Prosecutor’s Office (EPPO) in Venice (Italy), four suspects have been convicted of participation in a criminal organisation selling toner cartridges and office supplies at cheap prices, by systematically evading VAT. These are the first convictions in this investigation, code-named ‘Cheap Ink’, which uncovered a massive VAT carousel fraud, with profits estimated at €58 million.
Two entrepreneurs from Padua (father and son), charged as the perpetrators of the fraudulent scheme, were each sentenced to six years and two months’ imprisonment. In addition to participation in a criminal organisation, they were found guilty of VAT fraud, money laundering, forgery of public documents (including notary deeds) and forgery of signatures. One accountant working for the criminal ring was sentenced to two years and two months’ imprisonment. A figurehead, who had been officially named as the legal representative of several companies involved in the scheme, was sentenced to two years and one month of imprisonment.
The verdicts were the result of an abbreviated procedure, as provided by Italy’s Code of Criminal Procedure. The court acquitted one defendant, who had been accused of being a straw man for one of the companies. This is a first court decision, still subject to appeal.
The investigation uncovered a complex fraud scheme involving more than 100 suspects and a network of companies located mainly in Italy’s Triveneto region, but also in several other EU countries. The scheme, which used destitute people as ‘straw men’ for dozens of companies, allowed the suspects to import toners for professional printers and stationery into Italy, while systematically evading VAT. This also allowed the group to resell the imported products at extremely advantageous prices, distorting the principles of fair competition on the market.
