EU Public Prosecutor’s Office Launches Major Fraud Investigation in Romania
Aggravated Subsidy Fraud and Money Laundering Case Involving a Romanian IT Company
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[1 February 2024, Luxembourg]
In a collaborative effort with national authorities, the European Public Prosecutor’s Office (EPPO) in Romania announced the launch of a major fraud investigation on 1 February 2024. The suspected crime involves a Romanian company that allegedly defrauded the European Union of nearly €2 million (approximately $2.3 million) through a complex money laundering scheme.
Key Findings
- Seven houses searched in Bucharest, Iași, Vaslui, and Ilfov.
- Two suspects detained, including the primary suspect.
- Four individuals placed under judicial control.
Details of the Investigation
Image: European Public Prosecutor’s Office Logo]
At the heart of the investigation is a Romanian company that requested non-repayable EU funds of up to €2 million to fund an innovative IT project called ‘PIST – Innovative Platform for Rapid and Secure Financial Transactions’. However, it is believed that the beneficiary of the project allegedly submitted false or deceptive documents for services and goods that were never delivered or purchased. Moreover, employment contracts featuring names of non-existent employees were discovered.
The fraudulently obtained EU funds distributed by Romania’s Ministry of Investment and European Projects are reportedly the subject of money laundering through both domestic and international financial circuits. The fraudsters are believed to have used shell companies registered in Spain and Bulgaria, as well as bank accounts in Belgium and Lithuania, to obscure the origin and destination of the money.
Suspects Bringing Before the EPPO
Certain individuals involved in the suspected criminal activities will be brought before the EPPO in Iași to be informed of their status as suspects. Others will be brought in over the coming days. The incriminating evidence could potentially constitute offenses of aggravated subsidy fraud and money laundering.
Seized Property and Frozen Accounts
To recoup the financial damages incurred and cover any potential judicial costs, the EPPO seized two expensive apartments worth approximately €250 000, plots of land, and froze the bank accounts of the suspects and their companies.
Partners in the Investigation
The EPPO acknowledged the support and cooperation received from:
- EPPO Support Structure in Romania
- Romania’s Anti-Corruption General Directorate and its subordinate structures in Bucharest, Ilfov, and Vaslui
- The Economic Crime Investigation Service of the Iași County Police Inspectorate
- The Special Intervention Brigade of the Romanian Gendarmerie
Role of the European Public Prosecutor’s Office
The European Public Prosecutor’s Office (EPPO) is an independent public prosecution body for the European Union. Its responsibilities include investigating, prosecuting, and bringing to judgment crimes targeting the financial interests of the EU. In this case, the EPPO is working closely with the national authorities to bring those responsible for the alleged fraud to justice.