Italian MP arrested over Malta-based insurance fraud

A joint investigation by Italian, Maltese, British and US police investigators called ‘Operation Malta’ has resulted in the arrest of Marco Mario Milanese, an MP in Premier Silvio Berlusconi’s People of Freedom (PdL) party, accused of corruption, divulging judicial secrets and conspiracy.

Milanese allegedly took bribes of money, expensive watches, jewelry, luxury cars – including a Ferrari and a Bentley – and overseas trips in exchange for confidential information related to a police investigation into the EIG insurance company.

The centre of the investigation was the Malta-based company European Insurance Group. The company is owned by Luciano Rotondi and the UK-based Compagnia Generale Servizi Finanza.

The company – always based in Malta – sold motor insurance policies in the Calabria region for three years, however clients were alerted that their policies were no longer valid and that they had to seek cover with other insurance companies as EIG could no longer service them.

EIG was liquidated and struck off the Malta Financial Services Authority’s register after becoming insolvent last year, and placed under the administration of a local audit firm. Directors are facing charges of fraud amounting to €30 million. One claim against the firm in Malta amounts to €200,000.

EIG used Italian intermediaries to run its business, solely concentrated in the south of the country, mainly in the Campania region.

“The Naples prosecutor’s office does not discriminate,” said Naples Chief Prosecutor Giovandomenico Lepore. “Police officers, judges and politicians are all treated as regular citizens under the law.”

Milanese is part of a larger investigation into the dealings of EIG. A warrant has also been issued for Carlo Barbieri, mayor of Voghera, which is outside Milan.

In December 2010, MaltaToday reported that Neapolitan Magistrate Fausto Zuccarelli signed warrants for the immediate arrest of the two main directors of EIB, namely Paolo and Vincenzo Viscione, after it was discovered that the Malta based company that operated from offices in Old Bakery Street in Valletta was used to siphon millions of euros through a series of illicit financial operations.

The Italian Guardia di Finanza (fiscal police) also raided 30 addresses, arresting another 10 people, most of whom are accountants, notaries and brokers, who are all facing charges of aiding the Malta based company and other companies to launder the takings from illegal financial operations.