EPPO investigates €1 million fraud involving RRF funds for e-commerce projects
The Office of the European Public Prosecutor in Bologna is investigating an alleged fraud worth approximately €1 million involving funds from the EU's Recovery and Resilience Mechanism for digitalisation and internationalisation projects of Italian companies through e-commerce platforms.
EPPO investigates €1 million fraud involving RRF funds for e-commerce projects
The Office of the European Public Prosecutor (EPPO) based in Bologna is conducting an investigation into an alleged fraud worth approximately €1 million involving funds from the European Union's Recovery and Resilience Mechanism (RRM), intended to support the digitalisation and internationalisation of Italian companies through e-commerce platforms. This was announced by the EPPO in a press release.
The inquiry, conducted by the Guardia di Finanza of Macerata, concerns an alleged fraudulent scheme aimed at obtaining financing under Italy's National Recovery and Resilience Plan (PNRR), which is financed by the RRM.
According to what emerged from the investigation, the scheme revolved around an entrepreneur who controlled several companies operating in the e-commerce sector. These companies allegedly issued false invoices and created fictitious documentation to make it appear that digital marketplace projects had been developed and implemented for the beneficiary companies.
The beneficiary companies allegedly used the false documentation to obtain subsidised loans and grants from SIMEST, the Italian financial institute for the development and promotion of Italian companies' activities 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 funds, the beneficiary companies allegedly transferred the money to companies controlled by the scheme's organiser as payment for non-existent services. Subsequently, further false invoicing arrangements were allegedly used to redistribute the funds among participants and conceal their origin.
The total value of the alleged fraud is estimated at approximately €1 million. Before the fraud was discovered, the suspects had already received an initial fund disbursement of €500,000. Following the investigation led by the EPPO, the payment of a further €500,000 was blocked and measures were taken to recover the funds already disbursed.
Seven people are under investigation for aggravated fraud against the state, misappropriation of public funds, money laundering and self-laundering. Five companies are also under investigation for crimes of corporate liability under Italian law.
Given the serious criminal charges against them, three suspects and one company have already submitted a plea agreement, returned funds and compensated the damage caused, for a total amount of approximately €270,000.
Source: European Public Prosecutor's Office
Source: Google News UK — Crime (en)