Palermo mafia ring busted during international operation

The main suspect is believed to have set up several companies in Brazil using front men and shell companies to hide the criminal profits of Italian mafia organizations, the European Union Agency for Judicial Cooperation in Criminal Matters (Eurojust) said.

The money is said to come from multiple extortions from entrepreneurs from Palermo. The investigation revealed that these funds were transferred from Italy to Brazil through complex money laundering mechanisms, often through foreign bank accounts.

According to Italy’s Guardia di Finanza, the crimes were aggravated by the facilitation of key mafia families.

The international operation also targeted a notorious mafia organization, leading to the seizure of nine companies mainly active in the real estate and hospitality sectors, mainly located in Brazil, but also in Italy, Switzerland and Hong Kong. Authorities also seized more than 350,000 euros (US$383,770) during the operation.

An initial estimate puts the value of the companies controlled by the defendants and with the backing of the frontmen at more than 500 million euros ($548 million).

The Guardia di Finanza revealed that the investigation has reached a crucial moment and revealed that a former regent of the Pagliarelli district, with the help of an entrepreneur and professionals from Northern Italy, launched profitable businesses in Brazil using money derived from Cosa Nostra’s criminal activities.

Italian authorities stressed that this latest operation is “the culmination of a complex investigative activity aimed at shedding light on the shared interests of leading members of the Palermo Cosa Nostra in corporate structures in Italy and abroad, especially in Brazil.”

Eurojust, which supported the operation, noted that this action followed two years of investigations and a first operation in August this year, which led to the arrest of a member of the mafia family and the freezing of assets worth EUR 50 million ( $54.77 million).