(Luxembourg, 23 January 2025) – The European Public Prosecutor’s Office (EPPO) in Cluj-Napoca (Romania) has filed an indictment at the Iași Tribunal against 10 Romanian citizens and four companies, suspected of perpetrating a €1.6 million fraud involving EU and national funds designated to promote employment.
According to the investigation, between 2019 and 2021, the defendants set up fictitious companies, in order to fraudulently obtain EU and national subsidies, aimed at helping unemployed people to improve their skills and job prospects.
The suspects are believed to have hired 197 people under a fraudulent scheme, thus defrauding the EU and national budgets of approximately €1.6 million (RON 8 177 156), 85% pertaining to the budget of the European Union and 15% to Romania’s national budget. According to the investigation, the individuals were either already employed by one of the companies involved, and had formally terminated their employment contract in order to be hired again, or did not fulfil the conditions to be considered apprentices. In addition, according to the investigation, the required training never took place.
Based on the evidence, the criminal ring used public officials from the National Employment Agency (ANOFM) in Bacău and Neamț counties in order to commit the fraud. In March and June 2024, two defendants – including a public official – admitted their guilt and signed plea-bargaining agreements, which were submitted to the Iași Tribunal. The plea bargain with the public official has become final.
In order to recover the estimated damage to the EU budget and any judicial expenses, earlier in this investigation, cash and properties with a combined worth of approximately €300 000 were seized.
If found guilty, the defendants face up to ten-and-a-half years of imprisonment for aggravated subsidy fraud and up to ten years for establishing an organised criminal group. The four companies, if convicted, could face fines of up to € 420 000 (RON 2 100 000), to which complementary penalties may be added.
All persons concerned are presumed to be innocent until proven guilty in the competent Romanian 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.