EU Court in Czech Republic: Three Individuals and Three Companies Convicted of €1.8 Million Funding Fraud

European Public Prosecutor’s Office (EPPO) makes a landmark ruling in the Czech Republic

February 2, 2024, Luxembourg

The European Public Prosecutor’s Office (EPPO) in Zlín, Czech Republic, secured a notable victory against fraud when it convicted three individuals and three companies for defrauding €1.8 million from the European Union’s (EU) Structural Fund.

Fraudulent Activities

The primary defendant, a Czech businessman, submitted two fraudulent payment requests to the Czech Ministry of Industry and Trade for a project aimed at expanding a new technological center. Investigators found that the prices of machinery claimed by his company were exaggerated. Furthermore, the defendant provided misleading and false documentation to secure additional funds.

Collusion Uncovered

The investigation unveiled suspicions involving two additional individuals and two more companies, who colluded with the primary defendant to commit the fraud. All six parties admitted to their involvement and agreed to compensate the damages for €1.8 million as part of a plea agreement.

Sentencing

The Olomouc branch of the Regional Court of Ostrava approved the plea deal and handed out the following sentences:

• The individuals received between one to three years’ imprisonment with probation, and fines ranging from €4,000 to €40,000.
• Companies were penalized with fines between €12,000 and €200,000.

Additionally, the primary defendant and his company were banned from applying for subsidies for the subsequent 8 and 10 years, respectively.

The Role of EPPO

The European Public Prosecutor’s Office is responsible for investigating, prosecuting, and bringing to judgement crimes against the financial interests of the EU. This case marks a significant achievement in the EU’s ongoing initiatives to combat fraud and maintain the integrity of its funding programs.