Operation "China Express": A massive tax fraud involving €1,5 billion uncovered, 190 people reported and over €7 million seized.

The Savona Financial Police dismantled an alleged fraudulent invoicing scheme linked to entrepreneurs, mostly of Chinese origin. Approximately 200 companies in 14 Italian regions were involved. €120 million was recovered for tax purposes, and 105 VAT numbers were automatically closed.

SAVONA – An alleged international tax fraud by 1,5 billion euros, built through a complex system of invoices for non-existent operations, companies linked to front men and economic flows distributed throughout Italy. This is the outcome of the operation “China Express”, conducted by the military of the Provincial Command of the Financial Police of Savonaunder the coordination of Public Prosecutor's Office of Savona, which led to the execution of preventive seizures against 22 entrepreneurs, mainly of Chinese origin, active in the wholesale and retail trade of clothing.

The investigation, considered one of the most significant in recent years in the fight against tax fraud in the commercial sector, involved approximately 200 companies operating in 14 Italian regions , leading to the reporting of a total of 190 people , the seizure of assets worth over 7 million euros , the tax recovery of 120 million euros and the automatic closure of 105 VAT numbers deemed to be instrumental to the fraudulent system.

It should be noted that the proceedings are still in the preliminary investigation phase and that, as required by law, all suspects are to be considered not guilty until a final conviction is issued.

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The investigation started in a beauty center in Albenga

The investigation originated from an apparently routine tax audit of a beauty center in Albenga , in the province of Savona.

According to investigators' findings, the business, run by a Chinese citizen, lacked the necessary characteristics to operate a wholesale clothing business: no warehouse, no employees, no organizational structure, and no financial capacity compatible with the declared volumes.

Despite this, he allegedly issued invoices for approximately 20 million euros relating to the wholesale sale of clothing to 204 companies , operating both in Italy and abroad.

This initial investigation led to a much broader investigation, which allowed investigators to reconstruct a complex system of fictitious invoicing.

The charges: false invoices and concealed accounting

The entrepreneur was reported to the Public Prosecutor's Office of Savona for the following crimes:

• issuing invoices for non-existent transactions;
• destruction and concealment of accounting documentation.

At the same time, 192 individuals were reported , believed, according to the investigative hypothesis, to be users of the false invoices, subsequently included in their respective tax returns or in those of the companies attributable to them.

How the system would have worked

The judicial police investigations have brought to light an alleged extremely sophisticated mechanism.

According to investigators, numerous companies operating in the wholesale and retail trade of clothing and costume jewelry allegedly recorded in their accounts invoices issued by individuals with no real economic operations.

The invoices contained extremely generic descriptions, with wording such as:

• “Shoes”;
• “Jewelry”;
• "Jeans".

In many cases, essential elements such as quantities, models, product characteristics or unit prices were completely missing.

Even the invoices referring to alleged services – including massages and beauty treatments – were found to be irregular, both in terms of the amounts indicated and because they were issued to companies carrying out commercial activities completely incompatible with such services.

A double economic advantage

According to the Prosecutor's Office's reconstruction, the system allowed users of the fake invoices to obtain a double benefit.

On the one hand, the fiscal one, through:

• the deduction of non-existent costs;
• the undue deduction of VAT.

On the other hand, the commercial one.

The companies involved could have purchased goods from real suppliers completely "under the table", at prices significantly lower than the market, subsequently reselling them even to customers not involved in the fraud at particularly competitive margins.

A mechanism that, according to investigators, would have significantly altered competition for companies operating regularly.

A turnover of one and a half billion euros

The companies subjected to precautionary seizure, considered by investigators to be serial users of false invoices, are said to have handled a turnover of approximately 700 million euros between 2017 and 2025.

Overall, considering all the companies involved, the sums transited through the system under investigation would reach approximately 1,5 billion euros.

At the same time, the Guardia di Finanza carried out numerous tax audits on companies located in Lazio, Lombardy, Piedmont and Tuscany , identified among the main beneficiaries of the invoices deemed fictitious.

The inspection activities have allowed, at the current stage of the investigations, to contest evaded tax bases for the purposes of direct taxes and VAT for approximately 116 million euros , contributing to an overall tax recovery of 120 million euros.

The role of front men

One of the central elements that emerged from the investigation concerns the frequent use of front men.

According to the Guardia di Finanza, many companies were formally registered to people with no business experience whatsoever, often unable to speak Italian, without financial resources, and, in some cases, even living within the company's premises.

Financial investigations, analysis of current accounts, and in-depth analysis of relationships with customers and suppliers have instead allowed them to identify those whom investigators believe to be the real directors of the companies.

In several cases, these individuals were formally employed by the companies or even completely unrelated to the corporate structure, but had full access to the company's current accounts and assets.

The cases considered most significant

Among the episodes highlighted by the investigators is that of a forty-year-old Chinese man living in Milano, believed to be the owner of around ten companies, on whose bank accounts approximately 6 million euro.

Another company was formally registered to a sixty-year-old Chinese woman who, according to investigations, has no longer been present in Italy since 2022, while the luxury cars registered to the company – including Audi and Tesla models – were apparently used daily by a different family unit.

The investigators also cite the case of two supermarket and market chains in the Marche and Emilia-Romagna regions formally managed by a nineteen-year-old Pakistani and a fifty-year-old resident of Casalnuovo di Napoli , both believed to be penniless and lacking managerial experience.

According to the prosecution's hypothesis, the current accounts were instead managed by a fifty-year-old Chinese citizen who, despite not having declared any income in Italy, was the owner of properties and luxury cars worth more than 3 million euros.

Seizures of luxury properties, bank accounts, and goods

At the request of the Savona Public Prosecutor's Office, the Preliminary Investigations Judge ordered precautionary seizures, including seizures of equivalent assets, against the suspects.

The measures concerned:

• liquid assets;
• shares and company stocks;
• mutual funds;
• insurance policies;
• jewels;
• luxury watches;
• designer bags;
• properties.

Among the seized assets are an apartment in the famous Vertical Forest of Milano, a villa with swimming pool, sauna and wellness centre in Guidonia Montecelio, a penthouse with swimming pool in the Roman district ofEUR, a luxury apartment in the neighborhood Sacred Mountain of Rome, a property in Prato, an apartment in the area Loreto di Milano, a small villa in Vigevano and an apartment in Reggio Emilia.

The total value of the seized assets exceeds 7 million euros.

The movable assets also include watches and accessories from prestigious brands such as Patek Philippe , Van Cleef & Arpels , Hermès , Chanel , Delvaux , Gucci and Prada , estimated at around 500 thousand euros.

105 VAT numbers closed

At the end of the investigation, having obtained the authorization of the judicial authorities, the Guardia di Finanza reported 105 VAT numbers to the Revenue Agency , which were subsequently automatically closed.

According to investigators, in many cases, these were actual "open and close" companies, registered under front names, with no assets or warehouse, burdened by significant tax debts, and created with the sole purpose of issuing false invoices for a fee.

The closure of the tax offices, investigators highlight, prevented these structures from being used for new illicit activities.

The aim of the operation

According to the Guardia di Finanza, Operation "China Express" confirms the Italian government's commitment to combating complex tax fraud and protecting economic legality.

The investigative activity aims to ensure fair competition between businesses by combating those systems that, through the use of false invoices, tax evasion, and undeclared purchases, allow them to charge artificially lower prices than those of tax-compliant operators.

The investigation continues under the coordination of the Savona Public Prosecutor's Office, while all suspects remain presumed innocent until the judicial authorities can definitively determine their responsibilities.