Title: Six Individuals and Companies Charged with Money Laundering and Fraud worth €4 million EU Funds in Romania

(Luxembourg, 31 January 2024**) - The European Public Prosecutor’s Office (EPPO) in Iași, Romania, announced charges against six individuals and six companies for aggravated fraud and money laundering, totaling €4 million EU funds.

Criminal Organization Obtained EU Funds for Research Projects

The suspects, believed to have headed a criminal organization, obtained public funds for two research projects:

1. Treating neuro-motor diseases
2. Developing innovative software to combat illegal goods trafficking

Despite the EU financing contracts requiring a 30% private contribution before disbursing the remaining 70%, the group is suspected of deceitfully acquiring the contracts for a firm under their control.

Simulated Acquisition Contract Procedures and Falsified Invoices

Instead of possessing the necessary resources to purchase the required medical and IT equipment, the conspirators allegedly:

• Simulated the acquisition contract procedures
• Awarded the contracts to their controlled firm
• Produced invoices with significantly increased prices, approximately three times the actual price

Complex Web of Payments and Forged Documents

The suspects reportedly transferred funds from the beneficiaries’ accounts to suppliers under their control and then withdrew the cash for personal gain. They also forged documents to falsely certify the purchase of equipment and its proper functioning.

Lavish Lifestyles and Seized Assets

A considerable portion of the illicit profits were spent on the suspects’ luxurious lifestyles, with evidence of international travel and a power yacht maintaining. Previously, authorities seized real estate assets valued at €8.5 million to reimburse the European Union budget.

Penalties and European Public Prosecutor’s Office Investigation

Under Romanian law, aggravated subsidy fraud and money laundering carry penalties of up to ten-and-a-half years and ten years imprisonment, respectively. The European Public Prosecutor’s Office, an independent EU body responsible for investigating, prosecuting, and bringing to judgment crimes against the EU’s financial interests, is handling the investigation.

European Union’s Financial Interests Protection

A spokesperson for the European Public Prosecutor’s Office stated, “This is a significant case demonstrating the seriousness of our efforts to protect the European Union’s financial interests. Our office will work tirelessly with our Romanian counterparts to ensure that those responsible for this heinous crime are held accountable.”