Upvote:5
There is at least a tiny germ of truth here, in that the people who live in the Alpine regions in Europe tend to be German-speaking. Mountains making natural barriers, European countries like to put their borders on them, which naturally gives all such countries a small German-speaking minority.
Also, there were large expulsions of Germans from non-German speaking countries at the end of World War II.
However, I was unable to find any reference to anyone expelling Germans from Italy (before or after the war). If it indeed ever happened, they did a crappy job, as German is the majority language in the Italian province of South Tyrol, spoken by more than a quarter of a million people as their native tongue.
In 1938, Mussolini did pass a series of anti-Semitic laws. However, these laws were never popular in Italy, and seem to have just been Mussolini's one concession to his ally's racism. As near as I can tell, the laws only affected "non-Aryans", so any ethnically German Italian citizens would not have been affected in the slightest.
Italy did set up an internment camp for Jewish refugees. However, it was not a "death camp", and native Italian jews were not sent there. Also, it appears that Italian authorities never cooperated with German requests for transfers of native Jewish people to their "care" until after the Italian government capitulated to the invading allies and the German army took over the north of the country.
My guess is that the story you heard is actually a mis-statement of what happened with the Italian Racial Laws.