The core of the scheme centered on a Chiari-based company that issued fake invoices totaling over €200 million to a network of 41 shell companies, using virtual IBANs to move funds abroad and then repatriate cash to the same companies at a 10% commission.

The operation laundered proceeds from tax evasion, bankruptcy offenses, drug trafficking, and organized crime by leveraging fake invoices and a web of 41 shell companies.

Authorities say the 41-company network generated false invoices to simulate legitimate trade, moving more than €200 million from Italy to China outside the regulated banking system via an underground network.

Eight people were arrested and assets totaling over €31 million were seized in a case named Green River, coordinated by the Lodi Public Prosecutor’s Office and carried out by the Guardia di Finanza.

Alongside the eight arrests, precautionary measures were placed on 44 individuals, targeting about €31 million in assets in Lombardy’s Economic and Financial Police Unit’s investigation.

Prato’s status as a major textile hub and its large Chinese community are highlighted, with past issues of Chinese mafia activity and labor exploitation in the textile sector.

Investigations point to Chinese mafia involvement in illegal activities beyond drug trafficking, including exploitative labor practices in Prato’s textile industry.

Authorities dismantled an underground banking network used by drug traffickers, handling hundreds of millions of euros over several years, with Prato identified as a logistical base.

The operation, codenamed Green River, exposed a network moving funds to China via underground banking channels and involving a global web of intermediaries.

One branch ran a lucrative illegal immigration operation, transporting migrants from China to Belgrade and across Europe, with payments up to €9,500 per person for journeys to Prato, Turin, or Verona.

The system facilitated virtual capital transfers across multiple European countries, with intermediaries earning commissions and roughly €80–€100 million moving annually for at least three years.

A clandestine bank, run since 2021 by a Chinese national from Prato, operated as a global broker for organized crime, enabling secure cross-border transfers without cash.