Financial Crime World

Title:EPPO Initiates Money Laundering and Subsidy Fraud Investigation in Croatia

EU Public Prosecutor’s Office Launches Inquiry Against Four Individuals and a Company

[Luxembourg, 5 October 2023]

The European Public Prosecutor’s Office (EPPO) in Croatia has initiated an investigation into allegations of subsidy fraud and money laundering against four individuals and a company. This follows recent arrests and questioning of suspects.

Over €2.5 Million in Agricultural Funds Allegedly Fraudulently Acquired

Between February 2015 and October 2023, the founder of the company under investigation, who also acts as the business manager of another company, is suspected of conspiring with three other individuals to secure over €2.5 million in EU agricultural funds via a single application. The application targeted the ‘Support for investments in agricultural holdings’ call, co-financed by the EU’s European Agricultural Fund for Rural Development (EAFRD) at 85% and the Croatian state budget at 15%.

False Requests, Forged Documents, and Unfair Financial Gain

Preliminary investigation findings conducted by the EPPO, in collaboration with the Dubrovnik-Neretva County Police Administration and the Independent Financial Investigation Sector of the Croatian Ministry of Finance reveal:

  1. The first suspect submitted a false request in her company’s name for the call, declaring false eligibility requirements, including financial capability.
  2. To support her application, she allegedly forged documents with the help of the other suspects.
  3. Following the grant, the suspect withdrew a significant portion of the funds in cash and transferred some to related companies.
  4. The remaining funds were either withdrawn personally or through one of the other suspects in cash.
  5. The EPPO asserts that the suspect gained an unfair financial gain equivalent to the received support, causing damages totaling over €1.5 million to the EU and national budgets.

Suspects to Face Pre-Trial Detention

The EPPO intends to propose a pre-trial detention order for all four suspects to the investigative judge.

The European Public Prosecutor’s Office: Protecting the EU’s Financial Interests

The European Public Prosecutor’s Office (EPPO) is an independent public prosecution office of the European Union, responsible for investigating, prosecuting, and bringing to trial crimes threatening the EU’s financial interests.