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(Luxembourg, 31 January 2024) – Two individuals and one association were convicted yesterday by the Regional Court in Brno (Czechia), for subsidy fraud involving the construction of social housing for the elderly, following an investigation by the European Public Prosecutor’s Office (EPPO) in Zlín.
The two individuals are the managing director and a member of an association of public interest registered in Czechia, which obtained up to €250 000 (CZK 6.2 million) in EU funding from the European Regional Development Fund, for a social housing project. The aim was to convert a pre-existing building into a facility to house elderly people in individual apartments.
However, according to the investigation, the representatives of the association made false statements relating to the reconstruction project. In particular, they commenced the reconstruction works before the handover protocol and other documents had been submitted.
One of the defendants was sentenced to one year-and-a-half’s imprisonment, while the other was sentenced to a one-year imprisonment, both suspended for two years. In addition, they were sentenced to pay a fine of €6 000 (CZK 150 000) each, and are prohibited from applying for subsidies for a period of five years. The association was sentenced to pay a fine of €8 000 (CZK 200 000), and cannot apply for subsidies for seven years.
The verdicts were the result of an agreement on guilt and punishment (a plea bargain), as the defendants pleaded guilty to all charges, and repaid the entire damage to the EU budget.
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.