Ooni Koda
  1. Home
  2. /
  3. Newsfeed
  4. /
  5. EPPO/Romania: Three individuals and five companies indicted for €1...

EPPO/Romania: Three individuals and five companies indicted for €1 million fraud involving IT project

August 6, 2024

  The European Public Prosecutor’s Office (EPPO) in Ia?i (Romania) has brought charges against three individuals and five companies for aggravated subsidy fraud and money laundering, following an investigation into an IT project, with an estimated damage of €1 million. Two of the suspects referred to the court of Ia?i remain in pre-trial detention.   At issue is a company that requested non-repayable EU funds of up to €2 million (RON 10 953 924), for an IT project for the development of innovative software solutions (Innovative Platform for Rapid and Secure Financial Transactions – PIST).   According to the investigation, between 2020 and 2022, the beneficiary of the project submitted false or inaccurate documents for services and goods that were never delivered or purchased, as well as employment contracts for persons who were not actually employed – thus unduly obtaining funds from the EU budget of €1 million. It is understood that these funds, paid out by Romania’s Ministry of Investment and European Projects, were subject to money laundering through domestic and international financial circuits, using shell companies registered in Bulgaria and Spain, and bank accounts in Belgium and Lithuania. According to the evidence, the shares of the Romanian-registered companies suspected of the criminal activities were transferred to Moldovan citizens and to citizens in Italy, in order to prevent potential investigations.    Under Romania’s Criminal Code, aggravated subsidy fraud is punishable with up to ten-and-a-half years of imprisonment, and up to ten years for money laundering. The five companies indicted, if convicted, could face fines of up to approximately €420 000 (RON 2 100 000), to which complementary penalties may be added.   Earlier in this investigation, in May 2024, three other suspects admitted their guilt and signed plea bargaining agreements, which were submitted to the Ia?i Tribunal.  In order to recover the damage to the EU budget and any judicial expenses, the EPPO has seized three apartments and two plots of land with a combined worth of approximately €500 000, and has frozen all bank accounts held by the suspects and their companies.   All persons concerned are presumed to be innocent until proven guilty in the competent Romanian 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. (Source: https://www.eppo.europa.eu/)

Read in full - click here
Bucharest to host second stage of International Grand Chess Tour

The second stage of the international Grand Chess Tour, one of the most important chess tournaments in the world, will take place in Bucharest from May 7 to May 16.  The first stage of will take place in Warsaw, Poland. However, the event’s opening will take place on May 6. In addition to these two, […]

Voxxed Days Bucharest 2025, Conference Day. AI, Purpose, and Building the Future of Tech in Romania

Voxxed Days Bucharest 2025 concluded the 2025 edition on 27th March, after two days of successful workshops and conferences.  "I'm grateful we managed to bring together 300 developers and tech team leaders again this year, in a conference dedicated to a passionate developer community. It was a significantly bigger effort than in previous years, given […]

Report: Civil protection shelters in Romania in poor state, could only fit 600,000

Romania’s civil shelters, which are to be used to protect people in the event of armed conflict, are few, unsanitary, and largely obsolete in terms of equipment, according to a report by the Court of Accounts. The audit conducted by the Court of Accounts on the situation of civil...

Untold organizers announce 'mega-festival' in Bucharest this year

The organizers of music festivals Untold and Neversea have signed an agreement with the Bucharest City Hall to organize a "mega-festival" in the capital this year. The large-scale project is set for a pilot edition this year, with plans to have it "grow year by year." It will take place at Arena Naţională. The talks […]

Over half of Romanians in urban areas targeted by online fraud, research shows

Around 61% of Romanians say they have been the target of online fraud attempts, the most common consequences being the infection of the device with malware or viruses (42%) and the loss of money (30%), according to the latest study conducted by Reveal Marketing Research. Of those who have been targeted, 39% have experienced such […]

Showpad opens R&D Hub in Bucharest

Showpad, active in AI-driven revenue enablement technology, announced the official launch of its Research and Development center in Bucharest. With headquarters in Ghent (Belgium) and Chicago (US), Showpad is "strategically positioning its new R&D center to tap into the rich talent pool and burgeoning technology ecosystem of Romania." It also underscores Showpad's dedication to accelerating […]