The European Public Prosecutor’s Office (EPPO) in Bologna (Italy) is leading an investigation into a suspected €1 million fraud involving funding from the EU’s Recovery and Resilience Facility (RRF), intended to support the digitalisation and internationalisation of Italian businesses through e-commerce platforms.
The investigation, carried out by the Italian Financial Police (Guardia di Finanza) of Macerata, concerns an alleged fraud scheme designed to obtain funding under Italy’s National Recovery and Resilience Plan (PNRR), financed by the RRF.
According to the investigation, the suspected scheme revolved around an entrepreneur who controlled several companies operating in the e-commerce sector. These companies allegedly issued false invoices and fabricated documentation to create the appearance that digital marketplace projects had been developed and implemented for beneficiary companies.
Based on the evidence, the beneficiary companies used the false documentation to obtain subsidized loans and grants from SIMEST, Italy’s financial institution for the development and promotion of the activities of Italian companies abroad, intended to finance the development of e-commerce platforms for the sale of their products abroad. In reality, the projects were never carried out.
The investigation further revealed that, after receiving the funding, the beneficiary companies transferred the money to companies controlled by the organizer of the scheme as payment for fictitious services. Additional false invoicing arrangements were then used to redistribute the funds among the participants and conceal their origin.
The total value of the suspected fraud is estimated at approximately €1 million. Before the fraud was detected, the suspects had already received a first disbursement of funding amounting to €500 000. Following the EPPO-led investigation, the payment of another €500 000 was blocked and measures were taken to recover the funds already disbursed.
Seven individuals are under investigation for aggravated subsidy fraud, misappropriation of public funds, money laundering and self-laundering. Five companies are also under investigation for corporate liability offenses under Italian law.
Considering the criminal charges elevated against them, three suspects and one company have already applied for a plea bargain procedure, returned funds and compensated the damage caused, for a total amount of approximately €270 000.
All persons concerned are presumed innocent until proven guilty in the competent Italian courts of law.
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.
