Suspected Recovery Fund fraud: 20 million euros seized in Italy

Brussels – The European Public Prosecutor’s Office (EPPO) in Milan has seized approximately 20 million euros held in bank accounts and insurance policies linked to five companies, over alleged fraud against the EU budget and misappropriation of Recovery Fund resources, the instrument financing the National Recovery and Resilience Plan (NRRP). EPPO has said the seized assets are linked to two suspects already subject to precautionary measures or suspected aggravated fraud involving public funds and self-laundering.

​The seizure of approximately 20 million euros was ordered after investigators identified attempts to conceal suspected criminal proceeds through substantial transfers into bank accounts and insurance products. It is believed that part of the proceeds was also invested in assets, including real estate. 

The seizures and arrests are part of the investigation into fake training courses through which Recovery Fund money was allegedly siphoned off. Investigators have turned their attention to a suspected fraudulent scheme linked to the New Skills Fund, through which EU funding intended for employee training was allegedly obtained by claiming fictitious training activities. 

The suspected fraud is estimated at around 40 million euros, of which approximately 33 million comes from EU recovery funds, but the scale of the fraud could be greater. “The latest investigative developments indicate a significantly broader scope of the scheme than initially identified,” the European Public Prosecutor’s Office said. At this stage of the investigation, EPPO has notified 84 legal representatives of companies across Italy that they are under investigation for suspected aggravated fraud affecting the EU’s financial interests.

 Italy has again found itself at the centre of the news for fraud involving the Recovery Fund: In 2024, a major investigation by the European Public Prosecutor’s Office uncovered illegal activities harming Italy’s National Recovery and Resilience Plan, and therefore the Recovery Fund money allocated to it, amounting to around 600 million euros. Further seizures followed, in separate investigative tracks but always with the aim of intercepting EU funds.