The 52-year-old cast a spell over the mother and her 17-year-old daughter in January, telling them they were possessed by the devil and that if they didn't submit to his care they would both die.
He also managed to convince the mother to separate from her husband as otherwise their daughter would die, La Stampa reported.
The man then moved into the family home in Niscemi, Sicily, and took on the role of husband and father.
He allegedly forced the women to have sex with him to "rid their bodies of demons" and extorted €8,000 from the pair in exchange for a series of "exorcisms".
It was only in July that the woman's husband reported what was happening to police, who after gathering information from witnesses, seized several items belonging to the "magician", including wooden crosses buried in the garden of the women's home, a photo of one of them and "fairy dust".
He has been arrested for fraud, extortion and sexual assault.