Croatian Business Owner Convicted of Financial Fraud and Forgery

A Croatian businessman has been convicted by the Zagreb County Court for subsidy fraud and forgery of documents, following an indictment filed by the European Public Prosecutor’s Office (EPPO) on May 24, 2023.

Conviction Details

• The defendant was sentenced to 11 months’ imprisonment, exchanged for community service and a fine of €26,512.
• The conviction was the result of a plea bargain, as the defendant pleaded guilty to all charges and paid damages totaling €221,873.84.

Background

The businessman, owner of a family farm, obtained large-scale non-reimbursable grants for agricultural projects co-funded by the European Agricultural Fund for Rural Development (EAFRD) and the state budget of the Republic of Croatia between March 2015 and November 2021.

Fraudulent Claims

• The defendant falsely claimed to have the financial means necessary to implement the proposed projects in applications submitted to Croatia’s Paying Agency for Agriculture, Fisheries and Rural Development.
• He also claimed to have made payments to suppliers, which were never done, and falsely declared that he had no debts to the state budget of the Republic of Croatia.

Requests for Approval and Payment

The businessman sent three requests for approval and payment of non-reimbursable support for his business projects. For one of the requests, the paying agency transferred €221,873.84 to the bank account of his business. The remaining two requests were not processed as the agency discovered that the suspect had debts to the state budget of Croatia.

European Public Prosecutor’s Office (EPPO)

The EPPO is an independent public prosecution office responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.