EU Prosecutor’s Office: Four Romania suspects with Italian mafia ties charged with EUR 4.3 mln fraud

The European Public Prosecutor’s Office (EPPO) said on Tuesday, July 30, that its Bucharest office brought charges against four suspects, believed to be part of a criminal ring with ties to Italian mafia groups, for a EUR 4.3 million subsidy fraud involving EU and national funds.

Prosecutors say that the defendants formed a criminal group with other suspects to provide false letters of guarantee to awardees of projects financed by EU funds, which were supposed to offer insurance against potential damages. In exchange for issuing the letters, they allegedly collected large sums of money.

The use of these documents resulted in an illicit gain of approximately EUR 4.3 million, most of which were from the European Regional Development Fund, the European Agricultural Fund for Rural Development, and the Regional Operational Programme, the EPPO said.

“They are believed to have carried out this fraudulent scheme in the name of companies registered in Czechia and Latvia, which did not have the right to issue letters of guarantee, nor the financial resources to cover the insured damages,” reads the press release.

The defendants face between four and 15 years of imprisonment if found guilty.

The indictments result from several investigations into criminal schemes using the same modus operandi, following house searches in Romania and France in May 2023. Earlier, in 2023, other suspects were charged and are currently awaiting trial. Previously, EUR 450,000 in assets were seized.

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