Luxury Yacht Maker For The World’s Super-Rich Faces Two Criminal Investigations

Italian luxury yacht maker Ferretti SpA, known for building high-end vessels for the world’s super-rich, is facing two criminal investigations after surveillance devices were found at its Milan headquarters in April 2024.

According to people familiar with the matter, Xu Xinyu, an executive director at Ferretti and board member representing Chinese majority owner Weichai Group, became suspicious after noticing an SUV and two unidentified men outside Ferretti’s Milan office, an 18th-century palace. He saw the same individuals multiple times at luxury hotels like the Mandarin Oriental and Palazzo Parigi, which led him to believe he was being followed.

Xu hired a private counter-surveillance company, which on April 3 found a listening device and signal amplifier hidden on his desk. Additional surveillance devices were found in the offices of Ferretti’s board secretary and Chinese-Italian translator, embedded in power outlets. Ferretti confirmed to Bloomberg News that surveillance equipment had been found.

In response to the discovery, two criminal complaints have been filed with prosecutors in Milan. One was filed in May 2024 by Xu, the secretary, and the translator, accusing unknown individuals of unauthorised access to a computer system and violating private life. If proven, these offences could result in both criminal and civil penalties, including possible jail time. Ferretti filed its own criminal complaint in January 2025, as confirmed in a company statement.

The investigations are still in early stages, and it is not clear if charges will be filed. No suspects have been officially named so far. Legal experts stated that while listed companies in Italy are usually required to disclose major security breaches, Ferretti has not yet informed investors about either complaint or the espionage incident.

The company’s statement described itself as the aggrieved party, saying it was wronged by the unlawful placement of surveillance devices. Ferretti denied there was any internal conflict, stating it had shared a mutually respectful and constructive relationship with Weichai for over a decade.

In February 2024, a rift emerged between Ferretti CEO Alberto Galassi and some board members over a share buyback plan. The board, consisting of six Chinese and three Italian directors, approved the plan, which proposed repurchasing up to 10% of company shares. Initially, Chinese board members opposed the move, fearing it might draw scrutiny from the Italian government due to national security regulations.

Italy’s golden power law, passed in 2012, allows the government to intervene in deals involving sectors deemed strategic, including defense, telecoms, and more recently, areas like media and agriculture. Because Ferretti also manufactures boats for police forces and coast guards, though this segment accounts for less than 0.5% of its sales, the company falls under the scope of the golden power law.

Over recent years, Italian authorities have increasingly used this power to monitor Chinese investments, especially since relations between the two countries started deteriorating around 2019. For instance, Pirelli SpA, another company with a major Chinese shareholder (Sinochem), was recently involved in a governance dispute tied to technology transfers.

In Ferretti’s case, sources said that Galassi formally notified Italian officials about the buyback plan in early March 2024. Chinese board members were reportedly surprised by how soon the filing occurred, suspecting that Galassi might be trying to gain support from Italian authorities to weaken their influence. However, Ferretti said the filing had the full and final approval of the board.

On March 31, the board cancelled the buyback and withdrew the golden power filing, citing the need for more legal and regulatory evaluations in both Italy and Hong Kong.

Shortly after, the private security contractor submitted its final report on the surveillance discovery in mid-April. On May 13, Xu and his two colleagues filed their complaint with prosecutors.

According to individuals with knowledge of internal discussions, Xu first informed Galassi about the surveillance incident on May 31 during a conversation. He followed up with an email about a month later, suggesting that the devices may have been planted by someone inside the company. On both occasions, Galassi asked Xu for the full security report to launch an internal probe, but Xu declined to share it at that time.

As tensions escalated, some board members discussed the possibility of replacing Galassi, according to insiders. Galassi has declined to comment on whether his job was at risk.

In August 2024, a board reshuffle took place. Jiang Kui, representing Weichai, was appointed as Ferretti’s new chairman.

Ferretti stated that on October 23, following a board meeting, it launched an internal investigation, which eventually led to the company’s own formal complaint filed on January 20, 2025.

Legal opinions remain divided over whether Ferretti should have disclosed the matter to the public. One lawyer, Domenico Colella, said that since the case is still unclear with no suspects and under legal secrecy, Ferretti may have been right to take a cautious approach.

However, another legal expert, Claudia Imperatore of Bocconi University, said that any criminal investigation involving potential data breaches or board-level surveillance could be considered market-sensitive information, and therefore should have been disclosed quickly.

As of now, the investigations continue, and it remains uncertain whether anyone will be charged.

References: Bloomberg, financialpost

Source: Maritime Shipping News