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08/10/2026   European Public Prosecutor's Office News

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Slovakia: EPPO indicts suspect for fraud involving forest development (Luxembourg, 8 October 2026) – Today, the European Public Prosecutor’s Office (EPPO) in Bratislava (Slovakia) filed an indictment at the Slovak Specialised Criminal Court against one individual for fraud involving a project to develop forest areas, co-funded by the EU. In 2018, the suspect, acting on behalf of a company, applied for a non-repayable grant to the Agricultural Payments Agency under Slovakia’s Rural Development Programme (2014–2020). The grant was co-funded by the EU, which covered 75% (€144 479), with the remaining 25% (€48 159) provided by the Slovak state budget. The main objective of the project was to strengthen the competitiveness of forestry through the purchase of modern machinery. One of the conditions for the project’s approval was that at least 70% of the annual revenue should come from forestry production or the provision of forestry services. To support the application, the defendant stated that revenue from such sources accounted for 100% of the company’s total turnover in 2017. However, the evidence showed that the company had no actual revenue at that time. The defendant is also accused of submitting fictitious contracts for services provided in forestry and timber harvesting to demonstrate that he was an eligible beneficiary. Subsequently, the defendant purchased machinery – a forestry tractor and accessories – and submitted a payment claim for €192 639. However, the investigation showed that he had never used the machinery. The defendant had lent it to another company that was based at the same address and managed by the partner of the defendant, which used it for agricultural activities instead of forestry. The defendant’s conduct caused an estimated damage of €192 639. If found guilty, the defendant could face a prison sentence of up to six years and a fine of up to €3 million. The investigation was supported by the Office for Combating Organised Crime of the Police Force Headquarters (Úrad boja proti organizovanej kriminalite Prezídia Policajného zboru - ÚBOK). All persons concerned are presumed to be innocent until found guilty in the competent Slovak courts of law. The European Public Prosecutor’s Office (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   Czechia: EPPO indicts four in large-scale VAT fraud scheme involving electronics trade uncovered (Luxembourg, 7 October 2026) – Today, the European Public Prosecutor’s Office (EPPO) in Ostrava (Czechia) has indicted four individuals and proposed to Prague’s Municipal Court plea bargains against four more suspects for their involvement in a large-scale VAT fraud scheme related to the trade of electronic goods, causing a damage of over CZK 4.8 billion (approximately €195.7 million). As previously reported, the investigation – code-named 'Záblesk' ('Flash', in English) – focused on a group of individuals suspected of involvement in a long-term criminal scheme involving the import of electronic equipment from third countries – including Hong Kong, the United Arab Emirates and the United States – into the European Union, through companies based in Czechia. These companies subsequently declared intra-community supplies of goods to entities registered in Hungary, Poland and Slovakia. However, these foreign entities had no real economic activity, did not take the delivery of the goods, and made no payments. The goods were in reality transported to warehouses located near the Ukrainian border. They were collected there by other individuals who subsequently disposed of the goods, without paying the VAT due. The damage of the fraudulent scheme exceeds CZK 4.8 billion (approximately €195.7 million), making it one of the biggest VAT fraud cases to date in Czechia. The investigation was supported by the Czech Police‘s National Organised Crime Agency (NCOZ - Národní centrála proti organizovanému zločinu). The defendants are indicted for serious tax fraud. If found guilty, the defendants could face prison sentences of up to 10 years, as well as the forfeiture of their property. Under the plea bargain, three of the defendants would receive sentences of five to six years and forfeit their property. One defendant could receive a suspended sentence. In addition, all of the defendants face a 10-year prohibition on engaging in business activities. All persons concerned are presumed innocent until proven guilty in the competent Czech 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 ‘Hermes’: 62 detained in probe into €410 million VAT carousel fraud involving mobile phones (Luxembourg, 7 October 2026) – The European Public Prosecutor’s Office (EPPO) has conducted searches in eight countries and detained 62 suspects in a probe against criminal organisations suspected of operating a carousel VAT fraud selling mobile phones and electronic devices. The criminal scheme under this investigation, code-named ‘Hermes’, caused an estimated damage of at least €410 million in VAT losses to several EU Member States. Over 300 searches took place today in Austria, France, Germany, Italy, Malta, the Netherlands, Portugal and Spain, at the suspects’ homes and offices of companies belonging to the organised crime group, as well as tax advisers, lawyers and transport companies. In addition, 62 suspects were detained in Portugal (39), Spain (20) and Italy (three). Law enforcement also executed orders to seize up to €310 million. Bank accounts and companies’ shares were frozen and real estate and vehicles, including luxury cars, were seized, as well as cash and golden coins, worth up to €9 million. Based on the evidence, the transnational criminal groups under investigation set up an intricate network of intermediary companies in Spain, Italy, Portugal, Austria, France and Malta with the aim of defrauding VAT rules on intra-community transactions – as cross-border transactions between Member States are exempt from value added tax (VAT). This was done in order to trade the goods through a fraudulent chain of companies and missing traders – who would vanish without fulfilling their tax obligations. Other companies in the fraudulent chain would subsequently claim VAT reimbursements from the national tax authorities.   more   Italy: 11 suspects arrested in €100 million VAT fraud case involving the trade of plastics products (Luxembourg, 7 October 2026) – At the request of the European Public Prosecutor’s Office (EPPO) in Turin (Italy), eight suspects have been placed in pre-trial detention and three under house arrest, in an investigation targeting an organised crime group suspected of large-scale VAT fraud in the trade of plastics products. Law enforcement also executed an order to seize assets worth up to €25 million. The investigative measures, ordered by the judge for preliminary investigations at the Court of Turin, were carried out on Tuesday by 120 officers of the Italian Financial Police (Guardia di Finanza) from Turin and Ancona, with additional support from units in Piedmont, Marche, Veneto, Lombardy, Apulia and Calabria. Searches were also carried out at the suspects’ homes and offices using ‘cash dogs’ – canine units specialised in searching for currency. As previously reported, the investigation uncovered a VAT fraud scheme based in the Marche region and involving a network of shell companies that acted as intermediaries in the sale of industrial plastics products, located in Italy, Austria, Bulgaria, Czechia, Hungary, Italy and Romania. These companies, often lacking any real business activity, systematically failed to declare and pay VAT. The evidence shows that, between 2018 and 2023, the suspects fraudulently issued and used invoices for non-existent transactions totalling €500 million, resulting in a VAT evasion of around €100 million. The fraudulent setup also allowed the suspects to sell products at prices significantly below market value, distorting competition and harming legitimate businesses in the sector. Meanwhile, the actual recipients of the goods – Italian companies in Piedmont, Lombardy, and Tuscany – used the plastics products in their industrial processes. Earlier in this investigation, ten suspects were convicted by the Tribunal of Nola for VAT fraud, the use and issuance of false invoices and related tax crimes. Two other defendants were also convicted on 21 September 2026. Over 50 individuals are under investigation for alleged crimes, including participation in a criminal organisation, VAT fraud, issuing and using false invoices, failure to file tax declarations, tax evasion, and unlawful tax compensation. The investigation continues to identify further links in the fraudulent network and freeze additional assets to cover the estimated illicit proceeds of crime. All persons concerned are presumed innocent until proven guilty in the competent Italian 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   Spain: Individual convicted of misappropriating EU subsidies intended to support unemployed people In Spanish below / En español más abajo (Luxembourg, 7 October 2026) – An individual was convicted of misappropriating EU funds granted to a cooperative for unemployed people, following an indictment by the European Public Prosecutor’s Office (EPPO) in Madrid (Spain). On 28 September 2026, the Second Criminal Chamber of the Audiencia Nacional sentenced the defendant to a six-month prison term and a two-year ban on receiving subsidies. The Court also ordered the defendant to pay €95 000 in compensation to the Region of Murcia, which managed the EU funds. In its judgment, the Court found that the defendant had led an initiative to establish a cooperative for unemployed people seeking work. To that end, he contacted a number of unemployed persons and offered to make them members of the cooperative, in order to secure EU subsidies to cover social security and administrative costs. The cooperative was based on joint ownership and shared management involving several individuals. On 11 February 2019, an initial subsidy of €47 000 was awarded to the first six members of the cooperative and was transferred into the cooperative’s bank account. Subsequently, in March 2020, a further subsidy of €48 000 was paid when six new members joined the cooperative. The defendant – who was never a member of the cooperative despite being responsible for setting it up and submitting applications for funding – defrauded the members of the cooperative and kept the money for himself. He pleaded guilty and the sentence is now final. 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   España: Condenado por malversación de subvenciones de la UE destinadas a ayudar a los desempleados (Luxemburgo, 7 de octubre de 2026) – Una persona ha sido condenada por apropiarse indebidamente de fondos de la UE concedidos a una cooperativa para personas desempleadas, tras una acusación de la Fiscalía Europea (EPPO) en Madrid (España). El 28 de septiembre de 2026, la Sección Segunda de la Sala de lo Penal de la Audiencia Nacional condenó al acusado a seis meses de prisión y a una prohibición de dos años para recibir subvenciones. El Tribunal también condenó al acusado a pagar 95 000 euros en concepto de indemnización a la Región de Murcia, que gestionaba los fondos de la UE. En su sentencia, el Tribunal consideró probado que el acusado había puesto en marcha una iniciativa para crear una cooperativa para personas desempleadas que buscaban trabajo. Para ello, contactó con varias personas desempleadas y les ofreció hacerse miembros de la cooperativa, con el fin de obtener subvenciones de la UE para cubrir los costes de seguridad social y administrativos. La cooperativa es un modelo de empresa basado en la propiedad conjunta y gestión compartida entre varios particularess. El 11 de febrero de 2019, se concedió una primera subvención de 47 000 euros a los seis primeros miembros de la cooperativa, que fue transferida a la cuenta bancaria de la cooperativa. Posteriormente, en marzo de 2020, se abonó una nueva subvención de 48 000 euros cuando seis nuevos miembros se incorporaron a la cooperativa. El acusado – que nunca fue miembro de la cooperativa, pese a ser responsable de su creación y de presentar las solicitudes de financiación – defraudó a los miembros de la cooperativa y se quedó con el dinero. Se declaró culpable y la sentencia es ahora firme. La Fiscalía Europea es la fiscalía independiente de la Unión Europea. Se encarga de investigar, perseguir y juzgar los delitos contra los intereses financieros de la UE.   more   European Public Prosecutor's Office - 11 Avenue John F. Kennedy, Luxembourg, 1855 Luxembourg