The Bologna public prosecutor's office last week began an investigation into the possibility of factoring fraud at the failed Italian food group Parmalat. The alleged offences are said to have cost Italian factoring company Emil-Rofactor around L15bn (Ђ7.5m).
Bologna’s prosecuting attorneys Enrico Cieri and Flavio Lazzarini are investigating whether subsidiaries of Parmalat engaged in the creation of false invoices, which were sent to Emil-Rofactor for discounting. These subsidiaries then received payment upfront from Emil-Rofactor. It has been suggested by the prosecution that Emil Rofactor discounted invoices on behalf of Parmalat clients to the value of Ђ7.5m.
Emil-Rofactor, which started business in 1994, provides factoring services as part of the financial services group Emil-Ro.
Source: La Stampa
