EU Courts Hand Down Sentences in Czech Republic Corporate Fraud Case

February 2, 2024, Luxembourg

The Olomouc branch of the Regional Court of Ostrava in the Czech Republic handed down sentences on January 31, 2024, following an investigation led by the European Public Prosecutor’s Office (EPPO) into EU funding fraud.

Details of the Case

Three individuals and three companies were convicted in the case, which involved the fraudulent acquisition of €1.8 million in European Union funds for the expansion of a new technological centre in Zlín.

The primary defendant submitted two separate requests for payment to the Czech Ministry of Industry and Trade for the project, falsely inflating the prices of the machinery requested by his company. He also provided false documents to secure the EU funding.

Two additional individuals and two more companies were implicated in the scheme, alleged to have helped the primary defendant obtain the funds. All six parties involved in the case pleaded guilty, and the primary defendant returned the €1.8 million in damages as part of the plea agreement.

Sentencing

The Olomouc branch of the Regional Court approved the agreement and sentenced the individuals to periods of imprisonment with probation ranging from one to three years, and fines ranging from €4,000 to €40,000. The companies were fined between €12,000 and €200,000.

The primary defendant and his company were also banned from applying for subsidies for the next 8 and 10 years, respectively.

Role of the European Public Prosecutor’s Office

The European Public Prosecutor’s Office (EPPO) is responsible for investigating, prosecuting, and bringing to justice crimes against the financial interests of the European Union.

The Olomouc branch of the Regional Court handed down the sentences following this successful investigation by the EPPO into EU funding fraud.

Conclusion

The latest sentence handed down by the European Public Prosecutor’s Office in the Czech Republic underscores their dedication to combating fraud and financial irregularities affecting the European Union.

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