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(Luxembourg, 25 October 2024) – Two individuals and one company were charged today with a €3.9 million subsidy fraud, following an investigation into a project for an innovative line to produce new types of toast bread, led by the European Public Prosecutor’s Office (EPPO) in Prague (Czechia).
The suspects are formally accused of submitting false data and concealing substantial information, in order to obtain €3.9 million in EU funds from Czechia’s Ministry of Industry and Trade, under the Programme Enterprise and Innovation for Competitiveness. They were notified of their charges by Czechia’s National Organised Crime Agency of the Criminal Police and Investigation Service (NCOZ).
Based on the evidence, the suspects deliberately mislead the Ministry of Industry and Trade, which paid the subsidy in full from the national budget. Subsequently, following an audit by the European Commission, the grant was not refunded by the EU, as the project was deemed ineligible for reimbursement, resulting in a total loss of €3.9 million (CZK 100 000 000) to Czechia’s national budget.
In order to compensate the damage, the EPPO has obtained a freezing order for the total amount of the grant, which is being executed today. Real estate owned by the company was seized.
If found guilty, the defendants face between five and ten years’ imprisonment. If the company is convicted, the court may order confiscation of assets and a fine of up to €1.44 million (CZK 36 million).
All persons concerned are presumed to be innocent until proven guilty in the competent Czech 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.