Financial Crime World

EU Prosecutors Arrest Ten Suspected in Czech Healthcare Fraud Case

(Prague, Czech Republic, February 19, 2024) - In a coordinated operation today, the European Public Prosecutor’s Office (EPPO) and Czech police arrested ten individuals in connection with a healthcare fraud case. They conducted searches at the suspects’ homes, offices, and two hospitals in 11 cities.

Suspects under Investigation

The suspects, which include a hospital manager and personnel from the contracting authority and medical equipment suppliers, are being investigated for corruption related to hospital contracts worth over €1 million. The alleged criminal organization, active since 2022, is accused of manipulating public procurement processes to benefit predetermined suppliers.

Allegations against the Criminal Organization

The group is accused of:

  1. Modifying contract conditions in the procurement management system
  2. Transmitting confidential information to preferred suppliers
  3. Receiving bribes in exchange for awarding contracts
  4. Using forged invoices to conceal illicit funds

The medical equipment in question includes:

  • Operating tables
  • Laparoscopic and arthroscopic surgery instruments
  • Endoscopes
  • Defibrillators
  • Surgical drills
  • Ventilators

Pre-determined suppliers paid bribes, worth 10% of the contract value, to contracting authority personnel in exchange for contracts.

Damages to the EU Budget

Some of the medical equipment supplies were co-funded by the European Regional Development Fund under the REACT-EU program. It is estimated that the total damages to the EU budget from the fraud case so far is close to €1 million.

Charges against the Suspects

The suspects are being investigated on various charges, including:

  1. Damage to EU financial interests
  2. Procurement fraud
  3. Active and passive corruption
  4. Participation in an organized criminal group
  5. Money laundering

European Public Prosecutor’s Office (EPPO) Leads the Investigation

The EPPO, the European Union’s independent public prosecution office, is leading the investigation.

Editor’s Note

The ten suspects mentioned in this article were formally accused of their involvement in the fraud case on February 20, 2024. The European Delegated Prosecutor handling the case is considering filing a request to take some of them into custody.