(Luxembourg, 20 August 2025) – Yesterday, the Regional Court in Prague (Czechia) convicted three individuals and three companies of a €5.5 million subsidy fraud involving nanobot research, as well as money laundering, following an investigation and indictment by the European Public Prosecutor’s Office (EPPO) in Prague.
The main defendant, in collusion with the others, submitted applications for research funding without any intention of carrying out the projects. The court found that he had provided false documentation to justify the grants, including fabricated project assessments, forged invoices and contracts, and manipulated selection procedures. The funds were subsequently laundered through companies under his control.
The court ruled in full accordance with the indictment, finding that 17 projects were used to obtain funds fraudulently, causing damage of around €5.5 million to the Czech and EU budgets. An attempt to obtain an additional €5 million was also uncovered. The court further concluded that financial flows were deliberately concealed, indicating clear intent to launder the proceeds.
Much of the misused funding was spent on personal consumption and investments, including the purchase of 8 000 model railway trains, worth approximately €600 000 (CZK 15 million).
The main defendant was sentenced to eight years' imprisonment, a seven-year ban from holding positions in commercial company management and ordered to pay compensation for the damages. The court also ordered the forfeiture of frozen assets, including the model train collection.
Two other individuals were convicted of aiding in the fraud. They received suspended sentences of three years' imprisonment, with four years of probation. The involved companies were ordered to forfeit frozen assets and are barred from applying for future subsidies. The total value of assets to be forfeited is estimated at €2 million.
The judgment is not final and may be 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.