(Luxembourg, 17 August 2023) – In June 2023, two individuals were convicted by the Regional Court in České Budějovice (Czechia) of subsidy fraud, in an investigation led by the European Public Prosecutor’s Office (EPPO) in České Budějovice (Czechia). In a judgment that entered legal force this week, the defendants were found to have unlawfully obtained €125 000 in EU funds for a social entrepreneurship project.
Between 2016 and 2020, the two individuals made false declarations in their application for EU funding, for a project to produce natural cosmetics and perfumes, and employ young people from children’s homes. The investigation by the Regional Police Directorate of the Vysočina Region revealed that the funding was not used for its declared activity, and that the property obtained with the EU funds was transferred to one of the defendants.
Both defendants received suspended prison sentences and a financial penalty, and a ban on receiving subsidies. The damage of €125 000 was fully recovered from one of the defendants in the course of the court proceeding.