EPPO investigates suspected €20 million EU funds fraud across multiple countries

11 April 2026 , 18:32

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The European Public Prosecutor’s Office (EPPO) in Bucharest (Romania) conducted searches on Wednesday as part of an investigation into potential fraud involving two projects for the production of lithium-ion battery units and prefabricated metal modular structures, each valued at approximately €10 million and co-funded by the EU.

A total of 14 searches of houses and companies were performed in Romania and Bulgaria to collect evidence. Investigative actions were also taken in Austria and the United Kingdom (UK). Seven suspects will be brought to the EPPO’s office in Bucharest to be informed of their status as suspects.

The investigation alleges that the project beneficiaries submitted false or inaccurate documents to the managing authority in Romania between 2020 and 2024, such as false offers for the projects’ budget, along with inaccurate documents to demonstrate their own financial contribution and capacity. It has been indicated that the same funds were repeatedly used for both projects to simulate financial stability and were transferred to the beneficiaries’ accounts solely for the period needed to generate supporting bank statements – thereby illegally securing funds from the European Regional Development Fund (ERDF), of which €7.5 million has already been received.

Additionally, it is alleged that one of the projects was unlawfully executed with the help of a public official, who certified false information in the on-site visit reports. These reports, which served as the basis for the subsequent extension of the financing contract and project implementation period, incorrectly stated that the equipment required by the supply contract had arrived in the country, even though the main supplier had not actually procured any equipment.

The beneficiaries are also suspected of having later set up fraudulent domestic and international financial circuits to divert the funds for personal gain.

The matters under investigation could constitute offenses of fraud, forgery, and money laundering.

The EPPO relied on the EPPO Support Structure in Romania, the Romanian Operations Directorate (Poliția Română – Directia de Operatiuni Speciale), the Romanian Police – Criminal Investigations Directorate, Economic Crime Investigation Service Prahova and Bucharest (I.P.J. Prahova, D.G.P.M.B. – Serviciul de Investigare a Criminalitatii Economice), Criminal Investigations Service Bistrita-Nasaud (IPJ Bistrita Nasaud – Serviciul de Investigatii Criminale), the Special Intervention Brigade of the Romanian Gendarmerie (Brigada Speciala de Interventie a Jandarmeriei Romane), Fight Against Fraud Department (DLAF); as well as the National Investigative Service in Bulgaria (Национална следствена служба) and the Bulgarian General Directorate for Combating Organised Crime (ГДБОП).

All persons concerned are presumed innocent until proven guilty in the competent Romanian courts of law.

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.