EU Court in Czech Republic: Three Individuals and Companies Convicted in €1.8M Fraud Case

European Public Prosecutor’s Office (EPPO) Brings Six to Justice for EU Funding Fraud

(Luxembourg, February 2, 2024) – The European Public Prosecutor’s Office (EPPO) in Zlín, Czech Republic, secured convictions against six individuals and three companies for EU funding fraud, totaling €1.8 million in damages. The Olomouc branch of the Regional Court of Ostrava handed down the sentences on Thursday.

Investigation Discovers False Documents and Price Manipulation

The EPPO’s investigation uncovered that the primary defendant, Jan S., submitted false documents and submitted two requests for payment to the Czech Ministry of Industry and Trade (MIT) for €1.8 million towards expanding a new technological centre, financed by the European Union’s Structural Funds. The investigation also found that Jan S.’s company artificially increased the prices of machinery and submitted incorrect information to receive additional funding.

!!Important The following section includes details about the sentences and penalties.

Defendants Plead Guilty and Are Sentenced

• Jan S.: Prison sentence of three years with probation, and a fine of €40,000, with a ten-year ban on applying for subsidies for his company.
• Petr T.: Prison sentence of one year with probation, and a fine of €4,000.
• Jana Š.: Prison sentence of two years with probation, and a fine of €20,000.
• Company A: Fined €12,000.
• Company B: Fined €100,000.
• Company C: Fined €200,000.

All six defendants pleaded guilty, and Jan S. paid back the entire amount of €1.8 million.

The European Public Prosecutor’s Office

The European Public Prosecutor’s Office (EPPO) is the European Union’s independent public prosecution body, responsible for investigating, prosecuting, and bringing to judgment financial crimes against the EU’s interests.