Financial Crime World

Croatia: Three Individuals and a Company Under Investigation for EU Funds Fraud in Zagreb

European Public Prosecutor’s Office (EPPO) Launches Investigation

(Luxembourg, 30 April 2024) – The European Public Prosecutor’s Office (EPPO) in Zagreb, Croatia, has launched an investigation into three individuals and a company suspected of committing fraud and document forgery, aiming to obtain a €2.5 million grant for earthquake repairs, financed by the EU Solidarity Fund (EUSF).

Suspects Arrested for Subsidy Fraud and Document Forgery

  • Three individuals and a company under investigation
  • Suspected of submitting false documentation and committing subsidy fraud
  • Arrested on 29 April 2024 at the request of the EPPO

Alleged False Documentation for Earthquake Repairs

Restoration of Power Infrastructure Damaged by Earthquakes

  • Purpose of project was to restore power infrastructure damaged by earthquakes
  • Company owner had to present findings and opinions on damage
  • Proof of medium voltage cable testing required

Falsification of Documentation

  • Company owner arranged falsification of documentation
  • Assisted by two other suspects: a court expert for construction and a certified electrical engineer
  • Allegedly falsely stated electric power infrastructure had been damaged in earthquake
  • Unjustifiably increased cost for restoration of existing power network

Forged Documents and Approval of Funds

  • Submitted forged documents as attachments to application
  • Approval and payment of €2.5 million from EUSF
  • Around €1.7 million paid to suspect’s company for ineligible costs

Securing Unlawfully Acquired Financial Gain

  • EPPO requested investigating judge to freeze company’s assets and funds
  • Initial investigation activities carried out in collaboration with Croatian National Police Office for Suppression of Corruption and Organized Crime (PNUSKOK) and Croatian Tax Administration’s Independent Financial Investigation Sector

European Public Prosecutor’s Office

  • EPPO is the independent public prosecution office of the European Union
  • Responsible for investigating, prosecuting, and bringing to justice crimes against the financial interests of the EU