Recovery Fund fraud – €486,000 seized in Italy

Brussels – European public prosecutors seized assets worth up to 486,000 euros in connection with an investigation into suspected fraud on European subsidies through the Recovery Fund and money laundering. The move came at the end of an investigation into alleged subsidy fraud and embezzlement of public funds. The European Public Prosecutor’s Office (EPPO) said that, according to the evidence gathered, two companies applied for funds from the Recovery Facility, intended to support their digital transition. The companies are believed to have submitted false documentation and declarations regarding the existence of operational headquarters in southern Italy, their financial solidity, and their intention to implement the funded projects, which never started.

Further investigations led to two other companies and six individuals, all of whom had “strong connections” with the first two indicted companies. The total EUR 486,000 seized by the Venice Financial Police is believed to be the illicit amount obtained and diverted from its intended use, with EUR 183,000 laundered by paying off debts to other companies in the criminal organization. 

It is the latest case of Recovery Fund fraud discovered in Italy, less than 10 days after the previous one announced. The extent of the damage to the EU budget is one of the smallest compared to the investigations conducted so far. However, the European Public Prosecutor’s Office highlights the attention to criminality in Italy, which is the primary beneficiary of EU recovery funds and, consequently, is at the center of more rigorous and comprehensive controls.