In Italy, Austria, Romania, and Slovakia, authorities have arrested 22 individuals suspected of embezzling hundreds of millions of euros in post-coronavirus EU support funds. The European Public Prosecution Service (EOM) states that this funding was designated to kickstart the Italian economy following the pandemic.
The alleged embezzlement occurred between 2021 and 2023, with the suspects accused of submitting fraudulent business reports when applying for the support funds. These reports purportedly represented fictitious small and medium-sized enterprises (SMEs) seeking international expansion.
Authorities assert that the suspects collaborated with a network of accountants, financial service providers, and notaries to divert the funds into bank accounts located in Austria, Romania, and Slovakia. The EOM notes that the suspects employed sophisticated AI software, VPN connections, and foreign cloud servers to facilitate their scheme.
In response to the investigation, financial police in Venice have frozen over 600 million euros in assets based on orders from a preliminary investigation judge. Luxury assets, including apartments, villas, cryptocurrencies, Rolex watches, Cartier jewellery, gold, and high-end vehicles, have been seized.
Law enforcement officials have conducted searches at the residences and business premises of the suspects. With assistance from police in other EU member states, the 22 individuals have been apprehended, according to the EPOM. Among the suspects, eight are held in pre-trial detention, fourteen are under house arrest, and one accountant has been subject to a professional ban.
