The mobster is a boss in the Camorra, the infamous Neapolitan mafia, and is believed to have offered the money to a woman from Eastern Europe to provide one of his men with a son, according to Il Mattino.
According to the paper, he did it to demonstrate the extent of his power in the area.
Prosecutors have opened an investigation into falsifying civil documents for criminal ends.
They want to establish whether this case is just one in a hidden network trafficking children.
One of the oldest and largest criminal organisations in Italy, the Camorra is most active in racketeering, drug trafficking, counterfeiting, waste management.