Propaganda Due ("Propaganda Two," commonly abbreviated P2) began as a conventional lodge within the Grand Orient of Italy, the country's mainstream Masonic body, tracing its lineage back to a 19th-century lodge originally associated with prominent Risorgimento-era Freemasons. Under the leadership of Licio Gelli, who became the lodge's Venerable Master in the early 1970s, P2 was transformed into something categorically different from ordinary Masonic practice.
Gelli restructured P2 into what investigators later described as a "covered" or covert lodge — members were recruited individually, often did not know each other's identities, rarely if ever met collectively in normal Masonic fashion, and were drawn overwhelmingly from the upper ranks of Italian public and institutional life: government ministers, senior military and intelligence officers, judges, senior journalists, bankers and industrialists. Rather than functioning as a fraternal or philosophical body, P2 under Gelli increasingly resembled an informal, cross-institutional influence network.
The lodge's existence and full membership came to public light only through a criminal investigation into an entirely separate matter: the collapse of banker Michele Sindona's financial empire, which led investigating magistrates to search Gelli's Tuscan villa, Villa Wanda, in March 1981.