(Luxembourg, 22 June 2026) – The European Public Prosecutor’s Office (EPPO) in Prague (Czechia) filed an indictment today with the Regional Court in Prague against two individuals and a company for a €4.1 million subsidy fraud, following an investigation into a project involving an innovative production line for new types of toast bread.
The defendants are accused of submitting false data and concealing substantial information, in order to obtain €4.1 million (CZK 100 million) in EU funds from Czechia’s Ministry of Industry and Trade, under the Programme Enterprise and Innovation for Competitiveness.
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 €4.1 million (CZK 100 000 000) to Czechia’s national budget.
If found guilty, the two individuals could face between five and ten years in prison. Under the indictment, they may also face fines up to €20 000 (CZK 500 000) and €41 000 (CZK 1 million) and be banned from receiving subsidies for five years.
If convicted, the company could be ordered to pay compensation of approximately €4.1 million (CZK 100 million). It could also face a fine of up to €2 million (CZK 50 million) and a 15-year ban on receiving subsidies.
Earlier in this investigation, the EPPO seized assets, including real estate owned by the company, to compensate the damage.
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.