https://www.eppo.europa.eu/en/news/romania-eppo-carries-out-searches-probe-eu2-million-it-fraud

(Luxembourg, 1 February 2024) – At the request of the European Public Prosecutor’s Office (EPPO) in Iași (Romania), seven house searches were carried out yesterday, in a probe into a €2 million fraud involving IT projects. Two people were detained, including the main suspect, and another four were placed under judicial control.

The searches were conducted in several locations in Romania, including in the city of Bucharest and the counties of Iași, Vaslui and Ilfov. Investigative measures were also carried out in Belgium, Bulgaria, Italy, Lithuania and Spain, as well as in the Republic of Moldova.

At issue is a company that requested non-repayable EU funds of up to €2 million (RON 10 953 924), for an IT project for the development of innovative software solutions (‘PIST — Innovative Platform for Rapid and Secure Financial Transactions’). According to the investigation, between 2020 and 2022, the beneficiary of the project submitted false or inaccurate documents for services and goods that were never delivered or purchased, as well as employment contracts with persons who were not actually employed – thus unduly obtaining funds from the EU budget of €1 million.

It is understood that these funds, paid out by Romania’s Ministry of Investment and European Projects, were subject to money laundering through domestic and international financial circuits, using shell companies registered in Spain and Bulgaria, and bank accounts in Belgium and Lithuania. According to the evidence, the shares of the Romanian-registered companies suspected of the criminal activities were transferred to Moldovan citizens and to citizens in Italy, in order to prevent potential investigations.

Some of the individuals under investigation have been brought to the EPPO’s office in Iași to be informed of their status as suspects, and others will be brought in during the coming days. The facts under investigation could constitute offences of aggravated subsidy fraud and money laundering.

In order to recover the damage to the EU budget and any judicial expenses, the EPPO seized two apartments, with a combined worth of approximately €250 000, plots of land, and froze the bank accounts of the suspects and their companies.

The EPPO counted on the support of: the EPPO Support Structure in Romania; Romania’s Anti-Corruption General Directorate and subordinate territorial structures of Bucharest, Ilfov and Vaslui (Direcția Generală Anticorupție și structurile teritoriale subordinate din  București, Ilfov și Vaslui); the Economic Crime Investigation Service of the Iași County Police Inspectorate (Serviciul de Investigare a Criminalității Economice din cadrul Inspectoratului Județean de Poliție Iași) and the Special Intervention Brigade of the Romanian Gendarmerie (Brigada Specială  de Intervenţie a Jandarmeriei Române).

The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.