Title: Dutch Business Owners Arrested for €500,000 EU Subsidy Fraud

Published on: 16 March 2023

Arrest of Two Suspects

On 16 March 2023, two suspects were arrested in the Netherlands by the Netherlands Labour Authority (Arbeidsinspectie) at the behest of the European Public Prosecutor’s Office (EPPO). The individuals, the owners of a consultancy firm based in Eindhoven, are currently in custody for allegedly committing fraud involving EU subsidies worth €500,000.

The Consultancy Firm

The consultancy firm, which assisted companies in securing EU subsidies for sustainable employability from the European Social Fund (ESF), provided training courses and consulted on the application process. The subsidy applications required the hiring of a consultant, and in this case, the same firm provided the training for which they were being paid.

Alleged Fraudulent Activities

Investigators allege that the suspects inflated their invoices by doubling the number of activities they reported and claimed for subsidies. By submitting false invoices, they artificially raised the amount of the subsidy application, potentially leaving the European Social Fund to pay out funds that were not rightfully entitled. The consultancy firm, now defunct, is believed to have utilized counter-invoices as part of the scheme, concealing the fraud by offsetting the false claims against legitimate expenses.

Searches and Seizures

Authorities conducted two separate searches, one in Eindhoven and another in Hamont-Achel, Belgium. Seizures during these operations included laptops, hard drives, luxury timepieces, and numerous documents, shedding light on the extent of the suspected financial misconduct. A Dutch residence in Hamont-Achel was also raided, yielding additional evidence in the ongoing investigation.

Ongoing Efforts Against EU Subsidy Fraud

The arrests follow a trend of increasing awareness and action against fraudulent schemes targeting EU subsidies. With the European Public Prosecutor’s Office (EPPO) ramping up their efforts to tackle such cases following its establishment last year.