ROME: Investigators have broken up a mafia-linked crime ring carrying out VAT fraud in Europe, issuing around 40 arrest warrants and seizing goods worth 520 million euros ($548 million), Italian prosecutors said on Thursday.

A judge in Milan ordered the crackdown on the ring for cross-border Value-Added Tax fraud via the sale of computer and IT equipment, and for laundering the profits, said a statement from prosecutors.

Those responsible had issued false bills totalling 1.3 billion euros, the statement added.

Investigating magistrates in Milan and the southern city of Palermo were involved in the case, said prosecutors.

Police in several European countries — Bulgaria, Croatia, Cyprus, the Czech Republic, Luxembourg, the Netherlands, Slovakia, Spain and Switzerland — as well as the United Arab Emirates are also carrying out raids and seizing goods in connection with the case.

Prime Minister Giorgia Meloni, congratulating the investigators, said it demonstrated Italy’s commitment to fighting tax evasion, which is estimated to cost the country 80 billion euros a year — or four percent of the country’s GDP.

As part of this operation, known as “Moby Dick”, four people have been arrested in the Bulgaria, the Czech Republic, the Netherlands and Spain under European arrest warrants.

The Milan judge who ordered the seizure of goods and assets worth 520 million euros has accused the leaders of the network of “favouring association with criminal mafia groups”, which is considered an aggravating factor.