Authorities in Italy, Austria, Romania, and Slovakia have made significant progress in uncovering a major fraud scheme involving the misappropriation of 600 million euros ($650 million) in post-pandemic relief funds from the European Union. The European Public Prosecutor's Office revealed that a criminal organization is suspected of diverting these funds from Italy's National Recovery and Resilience Plan between 2021 and 2023.
The funds in question were part of the EU's Recovery and Resilience Facility, a substantial financial package aimed at revitalizing economies that were severely impacted by the COVID-19 pandemic. Italy's national recovery and resilience plan, valued at 194.4 billion euros ($211 billion), is the largest in the EU and represents a significant portion of the country's GDP.
Financial police in Venice, Italy, played a crucial role in freezing assets worth over 600 million euros, including luxury properties, cryptocurrency, high-end watches and jewelry, gold, and luxury vehicles. The investigation also led to the arrest of 22 individuals across multiple countries, with eight suspects placed in pre-trial detention and 14 under house arrest.
The criminal organization allegedly used false corporate documents to fraudulently obtain grants intended for small and medium-sized businesses looking to expand internationally. By collaborating with a network of professionals, including accountants and notaries, the suspects managed to transfer the illicit funds to bank accounts in Austria, Romania, and Slovakia using sophisticated technologies like VPNs, cloud servers, and artificial intelligence software.
The European Public Prosecutor's Office emphasized the coordinated efforts of law enforcement agencies from different Member States in apprehending the suspects and conducting searches to gather evidence. The case underscores the importance of vigilance and cooperation in combating financial crimes that threaten the integrity of EU funding programs.
