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(Luxembourg, 18 March 2024) – Last week, the European Public Prosecutor’s Office (EPPO) in Vilnius (Lithuania) filed an indictment against nine individuals and two companies, for fraud involving EU funds to build a retirement home.
It is alleged that, between 2019 and 2022, an organised group consisting of nine individuals attempted to fraudulently obtain €200 000 from the EU’s Structural Fund. They are accused of falsifying documents and submitting them to state institutions to fraudulently obtain EU funding for the planned construction of a retirement home.
According to the evidence, financial accounting documents from at least four companies were falsified, to demonstrate the economic viability of one of the accused companies. Based on the investigation, however, this particular company neither engaged in commercial activities nor met the criteria for receiving a subsidy.
The investigation also revealed grounds to suspect that the terms of the public procurement call had been agreed upon with a pre-selected contractor, which was led by individuals who acted as accomplices.
The nine individuals and two companies are charged with falsifying documents and disposing of false documents, obtaining EU financial support by fraud, fraudulent financial accounting, abuse and embezzlement.
Almost €31 000 of the total of €200 000 of requested EU funding was paid out. After the investigation was opened, the suspects fully compensated the financial damage. If found guilty, the defendants could be sentenced to up to 7 years of imprisonment.
All persons concerned are presumed to be innocent until proven guilty in the competent Lithuanian 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.