The European Public Prosecutor’s Office (EPPO) has carried out a series of coordinated investigative actions across several countries, including Bulgaria and Romania, as part of a probe into suspected large-scale fraud involving EU funds. In total, 14 searches were conducted at private homes and company premises, with the operation led from Bucharest and supported by authorities in Austria and the United Kingdom. Seven individuals are currently under suspicion.

The investigation focuses on two projects with a combined value of nearly €20 million, both co-financed by the European Union. The schemes involve the production of lithium-ion batteries and prefabricated modular metal structures. According to prosecutors, between 2020 and 2024, the beneficiaries submitted “false or inaccurate documents” to Romanian managing authorities in order to secure funding.

Among the irregularities identified were fabricated bids used to inflate project budgets, as well as misleading documentation intended to demonstrate financial capacity and required co-financing. Investigators say the same financial resources were repeatedly circulated between accounts to create the illusion of stability, with funds briefly transferred “only for the period necessary to generate supporting bank statements.”

Through these methods, the suspects are believed to have obtained around €7.5 million from the European Regional Development Fund. Authorities also allege that one of the projects was unlawfully facilitated by a public official who validated inaccurate on-site inspection reports. These documents reportedly claimed that key equipment had already been delivered, despite evidence that the supplier had not purchased any machinery.

Prosecutors further suspect that once the funding was secured, complex financial arrangements were set up to redirect the money for personal use. These schemes reportedly involved both domestic and cross-border transactions designed to obscure the origin and destination of the funds.

The alleged activities are being examined as potential cases of fraud, document forgery and money laundering. EPPO stated that it is working in close coordination with Romanian authorities, as well as Bulgaria’s National Investigation Service and the Directorate General for the Prevention of Money Laundering, as efforts to gather evidence continue.