Italy: EPPO seizes assets in €1.3 million fraud and money laundering investigation

Rome: At the request of the European Public Prosecutor’s Office (EPPO) in Naples (Italy), the Italian Financial Police (Guardia di Finanza) of Naples have executed a freezing order amounting to €1.3 million against four companies and their respective legal representatives, suspected of fraud, embezzlement and money laundering.

At issue is a Naples-based company ostensibly operating in the field of administrative consultancy, which successfully applied in 2022 for two projects financed by EU funds. One of the projects involved a €300 000 loan for ‘the development of e-commerce for SMEs in foreign countries’, of which €150 000 was disbursed. The other involved a €1.3 million grant for SMEs (small and medium-sized enterprises), which was almost fully disbursed and financed by the Recovery and Resilience Facility (RRF).

Based on the evidence, the company, lacking operational headquarters, employees, and utility contracts, submitted falsified financial statements for 2019 and 2020 in order to secure the €300 000 loan. It is understood that for the €1.3 million grant, the same company, with an auditor’s assistance, submitted entirely fictitious data to the paying agency. These documents were intended to simulate foreign operations, a prerequisite for the funding.

According to the investigation, following the crediting of the funds, the company transferred the entire amount to three companies within Italy and to bank accounts in Belgium, Bulgaria, Lithuania and the United Kingdom. It is alleged that the legal representatives of the recipient companies were aware of the funds’ illicit origin and intended to obstruct their traceability, as evidenced by the absence of commercial relations between the companies.

At the request of the EPPO, the judge for preliminary investigations in Rome ordered the seizure of assets amounting to €1.3 million, based on the evidence collected. The assets seized include a Harley-Davidson motorcycle, two cars, and real estate properties in Stintino (Sardinia) and Rome.

All persons concerned are presumed to be innocent until proven guilty in the competent Italian 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.