(Luxembourg, 28 April 2026) – The European Public Prosecutor’s Office (EPPO) in Vilnius (Lithuania) has secured the conviction of four individuals in a case of attempted subsidy fraud, preventing the unlawful disbursement of nearly €2.6 million in EU funds.
The ruling, issued by the Vilnius Regional District Court following a simplified procedure, imposed a total fine of €103 200 on the defendants, who pleaded guilty to attempted fraud and document forgery.
As previously reported, the case concerns a company that was awarded EU funds to develop technologies to produce biodegradable cellulose cling film, in order to replace polyethylene film, thus contributing to the EU’s objectives of sustainable development and the creation of a green economy. The project costs amounted to over €5.6 million, of which €2.6 million was to be financed by the EU, and the remainder by the company’s own funds.
The investigation revealed that the defendants, acting as part of an organised group, submitted forged documents and misleading information regarding procurement procedures, suppliers and equipment costs to the national Innovation Agency (Inovacijų agentūra), in order to create the false impression of legitimate project implementation. The equipment was in reality sourced through companies linked to the group, while its value was artificially inflated.
To secure the funding, the group submitted a payment request for the full amount of EU support by the end of 2023. However, following investigative measures, including the arrest of suspects in December 2023, the managing authority was informed and no further funds were disbursed.
The pre-trial investigation was carried out in close cooperation with Lithuania‘s Innovation Agency (Inovacijų agentūra) and counted on the support of the Financial Crime Investigation Service (Finansinių nusikaltimų tyrimo tarnyba - FNTT).
Further investigations into additional individuals possibly linked to the scheme are ongoing.
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.