(Luxembourg, 21 May 2026) – An individual and an association were convicted today by the Regional court in Ostrava (Czechia), branch office of Olomouc, for fraudulently obtaining €200 000 (CZK 5 million) in EU funds for the provision of childcare services, following an investigation by the European Public Prosecutor’s Office (EPPO) in Zlín (Czechia).
The verdicts were the result of an agreement on guilt and punishment (a plea bargain), as the defendants pleaded guilty to all charges.
According to the investigation, the manager of an association dedicated to providing childcare in the Moravian region presented false statements, in order to obtain grants from the European Social Fund (ESF) to expand the services and improve employment conditions for families with children. Based on the evidence, the manager falsified the financial situation of the association, by concealing debts to the national authorities.
The individual was sentenced to two years' imprisonment, suspended for four years. In addition, the defendant was sentenced to pay a fine of €10 000 (CZK 250 000) and to compensate the financial damage to the EU and is prohibited from applying for subsidies for a period of seven years. The association is barred from applying for subsidies for 10 years.
Earlier in this investigation, in order to recover the damage to the EU and the Czech national budget, Czechia’s Police (Policie České republiky – Krajské ředitelství policie Olomouckého kraje) seized real estate worth over €200 000 (CZK 5 million).
The facts were reported to the EPPO in February 2024, by Czechia’s Ministry of Labour and Social Affairs.
The European Public Prosecutor’s Office (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.