(Luxembourg, 10 February 2025) – A suspected ringleader of a €100 million subsidy fraud was arrested last week, following an investigation by the European Public Prosecutor’s Office (EPPO) in Bucharest (Romania) into a criminal organisation believed to have mafia ties. According to the investigation, the suspect, an Italian citizen, operated a criminal group dedicated to systematic fraud involving EU funding.
He was detained on Tuesday, 4 February 2025, in Bucharest «Henri Coanda» International Airport while trying to flee Romania, and placed in pre-trial detention by the Bucharest Tribunal, on EPPO’s request. Two other suspected members of the criminal organisation were placed under judiciary control.
According to the investigation, the members of the criminal group used two Italian companies to participate in calls for tenders to obtain EU funding, organised by public authorities in Romania, in the field of construction and rehabilitation of drinking water distribution and the sewage system, as associates of Romanian companies or as third party supporters.
One of the companies under investigation had previously received an anti-mafia prohibition from the Italian authorities, which excludes it from obtaining public contributions, according to the Italian Anti-mafia Code.
Through the Italian companies, the suspects participated in 18 calls for tenders, worth €240 million in EU funding, financed by the Large Infrastructure Operational Program (LIOP) 2014-2020. They managed to win eight tenders, as associates or supporters of Romanian companies, worth over €100 million.
In order to prove their financial capacity and experience in similar projects, they allegedly provided false documents, including balance sheets certifying that the Italian companies had an average annual turnover of over €50 million. In reality, the turnover was 30 times lower. They also presented contracts for the execution of works in Iraq which, based on the evidence, did not correspond to the truth.
In addition, according to the investigation, the two companies did not deliver any works or services. The contracts were executed by the Romanian companies they were associated with, without any contribution from the Italian firms.
The case was reported to the EPPO by national authorities, after suspicions of possible serious irregularities and fraud. The investigation counted on the support of the Romanian Police – Special Operations Department (Directia Operatiuni Speciale din cadrul Politiei Romane) and the EPPO Support Structure in Romania. The European Anti-Fraud Office (OLAF) also conducted a complementary investigation, in cooperation with EPPO.
All persons are presumed innocent until proven guilty in the competent Romanian courts of law.
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.