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Roberto Mazzarella has been on the run for more than a year and was living under a false name, police say.
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In a statement, Italy's Carabinieri military police force said Roberto Mazzarella had escaped last January when he was supposed to have been arrested on murder charges.
The 48-year-old, arrested in the town of Vietri sul Mare, is considered a powerful figure within the Camorra organised crime group in Naples, and is listed as one of Italy's most dangerous fugitives.
Police said Mazzarella was with his wife and two children at the time of his arrest, and did not resist arrest.
The Mazzarella clan is famed for its involvement in counterfeiting in Naples, which has long been associated with banknote forgery.
A number of patrol boats were also involved in the arrest, positioning themselves off the coast.
Footage of the arrest was released by the Carabinieri, showing heavily armed officers entering the villa.
Police last month detained 16 people allegedly linked to the Mazzarella clan on charges of cyber fraud.
According to Italian news agency Ansa, he was living at the property under a false name.
Police also found three luxury watches, about €20,000, some false documents, and mobile phones at the resort.
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