EU fund fraud uncovered in Palermo, 7 under investigation, assets worth 15 million seized Nomi Video

The investigation led to the suspicion of the undue receipt of national and European contributions and a complex tax fraud. According to the findings of the finance police, the suspects would have submitted invoices for non-existent operations and other falsified documentation such as reports, metric calculations, sworn statements, to demonstrate costs not fully incurred for the construction of a fuel distribution plant, a complete agricultural company with stables, and a vineyard with an attached winery. In reality, only the latter project would have been partially completed, using false attestations to show the completion of the work within the deadlines set by the concession decree.

According to the finance investigations, to document the costs incurred for the implementation of the financed projects, false invoices were issued, for an amount of about 10 million euros, by a network of seemingly distinct companies from those benefiting from public subsidies, but in fact attributable to the main suspect and creator of the fraud system. In some cases, these would be a simulation of payments related to the false invoicing, as they were made as mere “round trips”, using the same sum of money (the so-called “shuttle amount”) that was transferred between the bank accounts of the companies involved. This mechanism would have allowed the suspects to unduly obtain public subsidies of over 4.5 million euros, of which over 2 million euros were already disbursed. The investigative activities would have shown how public funds were partially used for purposes other than those for which they were granted. Part of the money would have been used for speculative investments such as subscribing to investment funds, resulting in the crime of money laundering for one million euros.

The suspects

The prohibition measure of contracting with the public administration and exercising corporate or managerial functions was issued in the EPPO investigation against seven individuals: Giuseppe Barone, 59 years old from San Giuseppe Jato, de facto administrator of Verdejato srl, the cooperative company Agricola Buonanatura, Monreal srl, Barkleys srl, investigated for aggravated fraud for obtaining public subsidies, embezzlement, fraudulent declaration using false invoices, issuance of false invoices, and money laundering. Salvatore Martello, 36 years old, from San Cipirello, legal representative of Verdejato srl, investigated for fraudulent declaration using false invoices, issuance of false invoices, and money laundering. Giuseppe Maniscalco, 46 years old from San Cipirello, legal representative of Monreal srl and the cooperative company Agricola Buonanatura, investigated for fraudulent declaration using false invoices, issuance of false invoices, and money laundering. Rita Abbatino, 56 years old from San Giuseppe Jato, legal representative of Verdejato srl, investigated for aggravated fraud for obtaining public subsidies and money laundering. Rosario Musacchia, 46 years old from San Giuseppe Jato, legal representative of Mrtec srl, investigated for issuing false invoices. Calogero Barone, 28 years old from San Giuseppe Jato, legal representative of Barkleys s.r.l. – investigated for issuing false invoices. Francesco Luigi Stefano Piazza, 78 years old from Palermo, designer and technician of Verdejato s.r.l. and Agricola Buonanatura cooperative, accused of complicity in aggravated fraud for obtaining public subsidies also had a prohibition from practicing as an engineer. Companies Verdejato srl based in Cormano (Milan) and operating in San Cipirello, with its main declared activity of “grape cultivation”, Agricola Buonanatura cooperative, based in Monreale, with its main declared activity of “breeding cattle and buffaloes for milk and milk production”, Monreal srl, based in Monreale, with its main declared activity of “retail trade of non-food products”. Seizure also for Barkleys srl based in Novate Milanese (Milan), with its main declared activity of “construction of buildings” and Tribus srl, based in Novate Milanese, with its main declared activity of “support activities for plant production”.