The European Public Prosecutor’s Office (EPPO) in Palermo, Italy, has taken decisive action against a sophisticated fraud scheme involving EU funds. Following EPPO’s request, the Court of Palermo’s judge for preliminary investigations issued a freezing order exceeding €15 million, targeting seven individuals and five companies. The suspects are believed to be involved in fraudulently obtaining EU funds, self-money laundering, and tax evasion.
The court has imposed restrictive measures on the suspects, barring them from applying for subsidies, entering into contracts with public administration, and engaging in certain professional or entrepreneurial activities. Additionally, the Italian Financial Police (Guardia di Finanza) of Palermo has seized assets, including money, real estate, company shares, and a notably conspicuous campervan adorned with political messages and two coffins, which had been parked next to a historic Palermo landmark for over a year.
The investigation alleges that the suspects fabricated documentation, such as formal declarations, technical reports, and photographic evidence, to unlawfully secure over €4.5 million from the European Regional Development Fund (ERDF). These funds were intended for constructing a fuel distribution system, a farm with stables, and a vineyard with an enclosed cellar. Of the requested amount, more than €2.2 million had already been disbursed.
Further findings suggest the issuance and use of fraudulent invoices totaling €8.3 million, resulting in over €3.4 million in VAT reimbursements for the suspects.
Evidence also points to self-money laundering, where the perpetrators of the primary fraud also laundered the illicit proceeds. It is alleged that over €1.1 million of these proceeds were used to purchase real estate from bankruptcy proceedings and for speculative investments, aiming to conceal the criminal origins of the funds. An additional €850,000 in illicit proceeds is believed to have been misappropriated.
To disrupt the ongoing activities of the five companies under investigation, the judge ordered their seizure and appointed a judicial administrator to oversee operations. The total value of these companies is estimated at €7.5 million.
All individuals and entities involved are presumed innocent until proven guilty in the competent Italian courts.
The EPPO is an independent public prosecution office of the European Union responsible for investigating, prosecuting, and bringing to judgment crimes that harm the financial interests of the EU.
