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31/08/2026   European Public Prosecutor's Office News

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Investigation 'Precision': Belarusian citizens concealing links to Russian military industry convicted of subsidy fraud in project managed by EU Agency for Space Programme (Luxembourg, 31 August 2026) – Two Belarusian citizens (father and son) and a company they controlled were found guilty of subsidy fraud in a project to develop high-precision satellite navigation devices for the agricultural sector, following an investigation by the European Public Prosecutor’s Office (EPPO) in Vilnius (Lithuania). The investigation, code-named “Precision”, uncovered strong links between the defendants and Russian and Belarusian military industries, which are subject to EU restrictive measures. At issue is a Lithuanian-based company that obtained EU funding to develop professional satellite navigation receivers capable of using Galileo’s High Accuracy Service (HAS) for agricultural applications, including guiding agricultural machinery and supporting precision farming operations, despite having links with Russian and Belarusian military industry entities, subject to EU restrictive measures. The total budget allocated to the project was €1 064 933.81, with €745 453.67 funded by the European Union Agency for the Space Programme (EUSPA), of which €447 272 had been effectively disbursed. In order to obtain the EU funding, the company had to submit a declaration of honour to the EUSPA, stating that it was not subject to any EU restrictive measures and had no links to sanctioned entities. The company, established in Lithuania as owned and managed by the defendants, changed ownership in April 2022, shortly after the Russian aggression against Ukraine. A family member with US citizenship and a Lithuanian national were appointed at its helm, in order to circumvent EU restrictions applicable to Belarusian nationals. Strong links to Russian and Belarusian military entities The investigation revealed that the two Belarusian citizens who continued to effectively control the Lithuanian-based company, also held leading positions in a Russian-based company that develops and tests satellite navigation chips for military applications and is subject to EU sanctions. One of the defendants even acquired Russian citizenship between 2020 and 2021 for personal gain. He also held significant shareholdings in other companies with direct and indirect links to entities involved in military programmes and cooperating with the military industries of the Russian Federation and the Republic of Belarus, many of which are subject to EU restrictive measures. In one such company in the Russian Federation, he held the majority shareholding, while a former Russian state security high ranking officer held a substantial stake. By falsely declaring that the company at the centre of the EPPO investigation had no links to sanctioned entities, the defendants were able to obtain EU funding and gain access to the EU market and geospatial data.   more France: EPPO indicts two suspects in investigation into fraud involving ERASMUS+ funds (Luxembourg, 27 August 2026) – The European Public Prosecutor’s Office (EPPO) in Paris (France) has filed an indictment before the Paris Criminal Court against two individuals residing in Germany and Switzerland following an investigation into suspected subsidy fraud of €240 000 in ERASMUS+ funding. The investigation concerns an educational project related to children's literacy for which a French non-profit organisation, headed by the two suspects, received €240 000 under the ERASMUS+ programme between 2016 and 2019. The project was financed through a grant awarded by the French ERASMUS+ agency. According to the investigation, the suspects are believed to have used the non-profit organisation to obtain EU funding while failing to comply with the conditions of the grant agreement. The organisation is suspected of having lacked the operational capacity required to implement the project, while one of the suspects allegedly submitted falsified supporting documents to the French ERASMUS+ agency. The investigation, supported by the French Anti-Fraud Office (ONAF), further established that the educational activities financed under the project were not implemented as required under the grant agreement. Evidence gathered shows that part of the EU funding was misappropriated and that one of the suspects subsequently laundered part of the proceeds. If convicted, the defendants face sentences of up to seven years' imprisonment and fines of up to €750 000. All persons concerned are presumed innocent until proven guilty in the competent French 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.   more   Investigation ‘Echo’: EPPO arrests five suspected ringleaders in probe into VAT fraud involving wireless earbuds (Luxembourg, 26 August 2026) – At the request of the European Public Prosecutor’s Office in Munich (Germany), five individuals were arrested today in Czechia, suspected of being the organisers of a criminal VAT fraud scheme involving the sales of wireless earbuds. As part of this investigation, code-named ‘Echo’, assets were also seized in Czechia, Germany and Lithuania. It is understood that the suspects are the ringleaders of an organised crime group that has been operating a VAT fraud system involving AirPods since at least 2019, causing an estimated damage of €20 million between 2019 and 2023. The scheme was designed to take advantage of EU rules on cross-border transactions between Member States, which are exempt from value-added tax (VAT), by establishing shell companies to simulate cross-border supply chains. This allowed the perpetrators to claim back VAT without the corresponding VAT being declared or paid in Germany. Based on the evidence, the suspects were the managing directors or the actual directors of companies involved in the fictitious supply chains, located in Bulgaria, Czechia, Germany, Hungary, Lithuania and Slovakia. In addition to the arrests, real estate was also seized in Czechia. Bank accounts were also frozen in Czechia, Germany and Lithuania.   more   Investigation Calypso: More than 10 000 seized e-bikes auctioned in France (Luxembourg, 25 August 2026) – Today, a public auction in France of more than 10 000 e-bikes and e-scooters seized in the course of the European Public Prosecutor’s Office (EPPO) investigation Calypso generated € 1 853 800 in proceeds. This amount is a small part of the financial effects resulting from the ongoing investigation. As previously reported, EPPO’s investigation Calypso targets several criminal networks that manage the entire circuit of goods imported from China into the EU, including distribution across Member States and sales to end customers, while evading customs duties and committing large-scale VAT fraud. These networks - mainly controlled by Chinese nationals - are also involved in money laundering and sending the profits back to China. The fraudulent mechanism had been ongoing for at least eight years, causing an estimated loss of at least €350 million in customs duties and €450 million in VAT. During a raid end of June 2025 in four countries, ten suspects were arrested. In France, more than 10 000 e-bikes and e-scooters were seized on this occasion with the support of the French National Anti-Fraud Office (ONAF). Today, these vehicles were put up for public auction, organised by the French Agency for the Recovery and Management of Seized and Confiscated Assets (AGRASC). The public auction generated proceeds of € 1 853 800, an amount that may ultimately be restributed, subject to a final judgement in court. All persons concerned are presumed innocent until proven guilty in the competent 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.   more   Enquête Calypso : plus de 10 000 vélos électriques saisis mis en vente aux enchères en France (Luxembourg, le 25 août 2026) – Organisée en France aujourd’hui, une vente aux enchères relative à plus de 10 000 vélos et trottinettes électriques saisis dans le cadre de l’enquête judiciaire « Calypso » diligentée par le Parquet européen (EPPO) a permis de récupérer un produit financier de 1 853 800 euros. Ce montant ne représente qu’une petite partie des retombées financières découlant de l’investigation en cours. Comme indiqué précédemment, l’enquête « Calypso » menée par le Parquet européen vise plusieurs réseaux criminels qui gèrent l’ensemble du circuit d’importation des marchandises provenant de Chine et à destination de l’UE, y compris la distribution dans les États membres et la vente aux clients finaux, tout en soustrayant les marchandises aux droits de douane et en commettant une fraude à la TVA à grande échelle. Ces réseaux – principalement contrôlés par des ressortissants chinois – sont également présumés impliqués dans le blanchiment d’argent et le transfert des bénéfices vers la Chine. Ce mécanisme frauduleux a perduré durant au moins huit ans, entraînant une perte estimée à au moins 350 millions d’euros de droits de douane et 450 millions d’euros de TVA. Lors d’une opération judiciaire menée fin juin 2025 dans quatre pays, dix suspects ont été arrêtés. En France, plus de 10 000 bicyclettes et trottinettes électriques ont été saisies à cette occasion avec le concours de l’Office national anti-fraude (ONAF). Aujourd’hui, ces produits ont été vendus avant jugement aux enchères publiques organisées par l’Agence française de recouvrement et de gestion des biens saisis et confisqués (AGRASC). La vente aux enchères a généré un produit de 1 853 800 euros, montant qui sera consigné dans l’attente du jugement définitif rendu par le tribunal compétent. Toute personne concernée est présumée innocente jusqu’à ce que sa culpabilité ait été établie par les tribunaux compétents. Le Parquet européen (EPPO) est le parquet indépendant de l’Union européenne. Il est chargé d’enquêter, de poursuivre et de traduire en justice les auteurs d’infractions portant atteinte aux intérêts financiers de l’UE.   plus