The European Public Prosecutor's Office (EPPO) in Sofia has filed indictments against five people suspected of defrauding EU funds of over €6 million in a large-scale scheme involving construction machinery, the prosecutor's office announced on its website.
It is alleged that the accused were part of an organised crime group that had the clear aim of embezzling EU funds. With this intention, they created eight different companies that they managed directly or indirectly through third parties. These companies would then apply for funding under the Operational Programme "Innovation and Competitiveness" (OPIC) 2014-2020. to improve the energy efficiency of small and medium-sized enterprises (SMEs), which was in turn co-financed by the European Regional Development Fund (ERDF). These companies purchased 38 individual units of construction equipment, including dump trucks, excavators, front-end loaders, a bulldozer, trucks, screens and tippers, for a total value of EUR 6,046,553. However, the machines were never put into operation in accordance with the financing agreement, and some of them were sold instead.
In 2022, the European Public Prosecutor's Office carried out searches and seizures at 25 locations in Sofia, Pernik and Montana, including the companies' headquarters, as well as related properties. Documents, computers and a mobile device were seized by the Directorate General for Combating Organised Crime to the Ministry of the Interior.
In addition to the above, a separate money laundering investigation has been launched against one of the defendants for an alleged transfer of 3 million euros to an Austrian bank.
The investigation was launched based on an initial report by the European Anti-Fraud Office (OLAF).
If found guilty, the defendants face imprisonment of one to six years for misuse of EU funds and another three to ten years for participation in an organized criminal group.