Title: Six Romanians Charged with Aggravated Fraud and Money Laundering in EU Funds Scam
(Luxembourg, 31 January 2024) — The European Public Prosecutor’s Office (EPPO) in Iași, Romania, indicted six individuals and six companies today in connection with a suspected criminal organization accused of defrauding the European Union out of €4 million through aggravated fraud and money laundering.
Project Background
The organizations under investigation were part of two projects aimed at:
- Creating a research department specializing in neuro-motor diseases.
- Developing software to combat illegal trafficking of goods.
Both projects were approved for European financing worth up to 70%, but required beneficiaries to provide proof of private payment of 30% of each supplier’s invoice before securing the EU funding.
Manipulating the System
However, Europol alleges that the suspects manipulated the system by:
- Awarding contracts to a company under their control that could not afford the necessary equipment.
- Using another company under their control to issue false invoices.
The investigation claims that the suspects charged significantly higher prices, approximately three times the real price.
Certifying False Payments
To certify the payments had been made and the equipment was functional, the suspects reportedly produced:
- Fake documents.
- Falsified proof of delivery.
Luxury Expenses
A portion of the illicit profits was spent on:
- International travel.
- Leisure activities.
- The maintenance of a power yacht.
Assets Frozen and Potential Sentence
As part of the investigation, the EPPO froze €8.5 million worth of real estate belonging to the suspects to recover lost EU budget funds. The suspects face up to ten-and-a-half years’ imprisonment for aggravated subsidy fraud and ten years for money laundering under Romanian law.
About the European Public Prosecutor’s Office
The European Public Prosecutor’s Office (EPPO) is an autonomous public prosecution body within the European Union. It is mandated to investigate, prosecute, and bring to judgment crimes targeting the financial interests of the EU.