European funds fraud in Porto: eight people accused of €1.2 million swindle
The Public Prosecution Service in Porto has accused eight people and two companies of fraud in European funds and money laundering. The crimes occurred between 2010 and 2013.
European funds fraud accusation involves ten defendants in Porto
The Public Prosecution Service (PPS) in Porto has brought charges against eight people and two companies for crimes of fraud in obtaining European subsidies and money laundering, which are said to have generated profits exceeding €1.2 million. The announcement was made this Monday, as reported by SIC Notícias.
The Regional Public Prosecution Office of Porto (RPPO) informed, in a note published on its website, that the charging decision is dated 22 October and covers ten defendants in total — eight individuals and two companies. All are charged with crimes of fraud in obtaining subsidies and money laundering.
According to the accusation, the defendants acted in concert and established two companies, both based in Maia, in the Porto district, with which they applied for two projects financed by European funds: one managed by Turismo de Portugal and another by IAPMEI — Agency for Competitiveness and Innovation. The funds received were incorporated into the personal assets of the defendants.
To support the scheme, the defendants also created other companies — three of them with registered offices in Spain, Ireland and Albania — and used existing companies, through which they set up a circuit of fictitious invoicing. This invoicing was used to prove expenses and support reimbursement requests to the managing entities.
The PPS further states that the defendants "falsified capital increases for the applicant companies, leading the managing entities to believe that they had their own capital to support expenses not covered by the financing".
The facts in question occurred between 2010 and 2013 and are said to have generated undue patrimonial gains valued at €1,265,755.78 in total — corresponding to the total of the financing granted. The PPS requested that this amount be declared forfeited to the State.
The accusation also includes a request for the application of accessory penalties of deprivation of the right to subsidies or grants to all defendants who are convicted.
Source: SIC Notícias