Italy Uncovers Jet-Setting Pensioner Fraudsters

Italy's financial police on Thursday said they had discovered 174 pensioners who were picking up poverty benefits while living in the United States and South America and travelling to and from Italy.

Police seized 173 properties, 56 plots of land and 59 bank accounts belonging to the alleged fraudsters, who were all officially registered as residents in seaside villages in the southern region of Calabria.

"They had revenues that they were not declaring," said Eliana Minoia, the local police commander who headed up the operation, adding that investigators estimated the scam had netted around 5 million euros ($6.5 million).

Many were living in Argentina and Brazil, which have many Italian immigrants.

Investigators said in a statement that the pensioners fulfilled the conditions for receiving poverty benefits "only on paper" and had "fictitiously established residency in Italy" when they were in fact living abroad.

They said one 69-year-old man had been withdrawing the benefits in Brazil despite only spending "a few days" in Italy over the past four years.

Italian police have launched a sweeping crackdown against tax evasion and benefit fraud since Prime Minister Mario Monti took power last year.

Among the fraudsters uncovered have been Ferrari owners declaring zero income, "blind" benefit recipients walking unaided and one town in Calabria that used EU funds for the tourism sector to fund lavish weddings.