Financial Crime World

EU Bodies Uncover €15 Million International Fraud Scheme Involving Cyprus, Romania, and other Countries

Two EU anti-fraud bodies, the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO), have announced a joint investigation into an international fraud and money laundering scheme worth approximately €15 million. The scheme reportedly involved obtaining EU funds for IT projects through false invoices.

Investigation Details

The investigation, which is ongoing, involves entities and individuals based in the following countries:

  1. Cyprus
  2. Czechia
  3. Malta
  4. Monaco
  5. United States

OLAF and EPPO have provided the following statements regarding the findings of their investigation:

European Anti-Fraud Office (OLAF) Statement

“We have analysed and tracked down a likely money laundering scheme at an international level. The scheme is estimated to have defrauded the EU budget of at least €15 million,” said Ville Itala, the Director-General of OLAF.

European Public Prosecutor’s Office (EPPO) Statement

EPPO stated that the six IT projects at the heart of the investigation received EU financing for innovative software solutions to foster productivity and innovation. Between 2019 and 2022, the beneficiaries allegedly submitted false or inaccurate documents with overvalued services or services never provided. They also submitted fraudulent invoices for the purchase of goods, unduly obtaining EU funds.

Subsequently, false financial circuits, both domestic and international, were created to channel the funds for the beneficiaries’ benefit. Some of the suspects have already been informed of their suspect status, while others will be brought in for questioning in the coming days.

Countries Involved and Their Responses

  • Cyprus: The Cyprus Police Spokesperson, Christos Andreou, confirmed having no information to share regarding the matter. The local EPPO office was not immediately available for comment.

Conclusion

The facts under investigation could constitute offences of fraud and money laundering. The collaboration between OLAF and EPPO in unearthing and addressing such fraudulent activities highlights their commitment to protecting the EU budget and maintaining trust in the EU.

reporter follows the story closely

Cyprus Mail’s chief reporter, Andria Kades, has been following the story closely, with a focus on corruption, human rights, and mental health issues in her journalistic career since 2015.