The case of subsidy fraud involved 57 offenders in Italy who were charged with a long list of fraud and fraud- related crimes that cost the EC several billion lire. The fraud essentially involved false documents and invoices and was discovered as part of an investigation into orgiastic practices involving the use of illegal drugs. The case demonstrates the extent of and potential for fraud against the EC and also shows that social structural features must be recognized in order to understand the full magnitude of fraud. The authors emphasize the importance of understanding difficulties in fraud control, as well as distinctions between organized crime and white collar crime. They conclude that legal changes and strict controls alone cannot substantially reduce the potential for fraud in the EC, especially in view of the abolition of the EC's internal borders in 1993. 66 notes and references