Bulgaria: EPPO charges entrepreneur with fraud involving construction of dairy facility

(Luxembourg, 27 June 2024) – The European Public Prosecutor’s Office (EPPO) in Sofia (Bulgaria) filed an indictment today against an entrepreneur, accused of using false documentation to obtain EU funds for the construction of a dairy facility. 

The defendant is the manager of a company that obtained support from Bulgaria’s State Fund for Agriculture for a project to build a factory to process raw milk and produce dairy products, to the amount of €474 000 (BGN 927 352.44).

In order to receive an advance payment of the funds, the manager submitted a bank guarantee that was rejected by the paying agency, as it did not respect the requirements. It is alleged that the defendant subsequently presented a forged amendment to the original bank guarantee, to make it appear as if it had been issued by the bank with the required changes – thus misleading the paying agency, which made an advance payment of €237 000 (BGN 463 676.21), equivalent to 50% of the funds. 

In addition, according to the investigation, the works for which the beneficiary received the funds were never executed. 

If convicted, the defendant faces a sentence of between two and eight years of imprisonment.

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