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Italy: EPPO Seizes Assets in €1.3 Million Fraud and Money Laundering Investigation

EPPO announced enforcement action
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In an anti-money laundering operation spearheaded by the European Public Prosecutor’s Office (EPPO) in Naples, the Italian Financial Police (Guardia di Finanza) have enforced a freezing order totaling €1.3 million. This action targets four companies and their respective legal representatives, all of whom are suspected of engaging in fraud, embezzlement, and money laundering. Unfortunately, EPPO has not provided any names.

The focal point of the investigation is a Naples-based company that ostensibly operates in the administrative consultancy sector. This company successfully secured EU funds for two projects in 2022. The first project involved a €300,000 loan to develop e-commerce for SMEs in foreign markets, with €150,000 already disbursed. The second project, nearly fully disbursed, involved a €1.3 million grant for SMEs funded by the Recovery and Resilience Facility (RRF).

Evidence suggests that the company, which lacked operational headquarters, employees, and utility contracts, falsified its financial statements for 2019 and 2020 to obtain the €300,000 loan. For the €1.3 million grant, the company, allegedly aided by an auditor, submitted entirely fictitious data to the paying agency, fabricating documents to simulate foreign operations required for funding eligibility.

The investigation revealed that upon receiving 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 these recipient companies were aware of the illicit origins of the funds and intended to obscure their traceability, as evidenced by the absence of any commercial relations between the involved entities.

Acting on the EPPO’s request, a judge for preliminary investigations in Rome has ordered the seizure of assets valued at €1.3 million. The seized assets include a Harley-Davidson motorcycle, two cars, and real estate properties located in Stintino (Sardinia) and Rome.

The EPPO, an independent public prosecution office of the European Union, is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.

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