This week, the European Public Prosecutor’s Office (EPPO) in Zlín (Czechia) submitted a plea agreement to the branch of the Regional Court of Ostrava in Olomouc, in a subsidy fraud case with damage of over €1.8 million (CZK 45.8 million).
Three individuals admitted their guilt, and requested the conclusion of a plea bargaining agreement. Three companies were also referred to the court, for offences of subsidy fraud and damage to the financial interests of the EU.
As previously reported, one of the accused individuals submitted two requests for payment to the Czech Ministry of Industry and Trade (MIT), for a total amount of €1.8 million, for a project to expand a new technological centre, which was entirely financed by the EU’s Structural Fund. According to the evidence, the prices of the machinery requested by the suspect’s company were falsely increased, and he provided false and incorrect documents to receive more money.
The investigation also revealed grounds to suspect that two more individuals and two more companies had helped the primary defendant to receive the €1.8 million in EU funds for the expansion of the new technological centre.
All six pleaded guilty, and the primary defendant paid back the total amount of damage of €1.8 million, as part of the plea agreement. All individuals were given a conditional sentence of between two and five years with probation, and had to pay fines ranging from €4000 to €40 000. All companies agreed to pay fines of between €12 000 and €200 000. In addition, the primary defendant and his company have been banned from applying for subsidies for a period of between 8 and 10 years.
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.
