European Authorities Expose €3Million Fraud In Italy

A report today from the European Public Prosecutor’s Office (EPPO) has revealed details of a Scheme that defrauded millions of Euros from EU funding.

Following an investigation led by the European Public Prosecutor’s Office (EPPO) in Turin, 13 properties, 4 plots of land and €400,000 of money in current accounts were seized in several cities in Italy by the Italian Financial Police (Guardia di Finanza) from Asti, according to a report published Tuesday, July 4.

The EPPO’s central office in Luxembourg revealed that four suspects are believed to have fraudulently obtained around €3 million in EU and national funds to present their machines for food packaging at trade fairs abroad.

Between 2017 and 2020, three board members and the manager of the company supposedly provided false information (e.g. alteration of financial statements) to the officials responsible for disbursing loans.

The company received credits for over €2.8 million from the EU Programme for the Competitiveness of Enterprises and Small and Medium-sized enterprises (COSME) and almost €70,000 from national funds.

The investigation by the Guardia di Finanza (Nucleo di Polizia Economico Finanziaria) revealed that the actual financial situation of the company involved in the fraud was critical and that they had suffered an operational loss of €11.9 million and a negative net worth of €7.3 million at the end of 2019.

The four suspects were reported to the EPPO office in Turin in February 2022 for aggravated fraud against the European Union, undue receipt of public funds and fraudulent bankruptcy.

The criminal proceedings are still at the preliminary investigation stage, and the responsibility of the suspects will be finally established in the event of a conviction.

The European Public Prosecutor’s Office (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, such as fraud, corruption or serious cross-border VAT fraud.