(Luxembourg, 1 April 2026) – The European Public Prosecutor’s Office (EPPO) in Zlín (Czechia) has secured a conviction at the Regional Court of Ostrava against an entrepreneur, sentenced to six years and six months of imprisonment for subsidy fraud, damage to the financial interests of the EU, damage to a creditor and money laundering.
As previously reported, the defendant received €1 million (CZK 25 151 927.81) from the European Regional Development Fund (ERDF), under the Operational Programme ‘Enterprise and Innovation for Competitiveness’. The funds were intended for the creation of a modern system for long-term data storage in the Moravian-Silesian region.
The court found that the defendant had submitted false documents to obtain the EU contribution, falsely attesting that his company had secured the necessary co-financing and that it had purchased data archiving technology from companies in Germany and the United Kingdom. Instead of using the funds for the project, the defendant used them to pay his personal debts and other company obligations.
In addition to the prison sentence, the court imposed on the defendant a prohibition from dealing with subsidy bodies and participating in subsidy procedures in any capacity for a period of six years. The court also ordered the confiscation of €1 048 000, corresponding to the proceeds of the crime.
No penalty was imposed in relation to the insolvency of the convicted individual. The judgment is subject to appeal.
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.