The European Public Prosecutor’s Office (EPPO) branch in Romania indicted on Thursday 10 individuals and four companies accused of orchestrating a €1.6 million ($1.66 million) fraud scheme involving funds dedicated to helping the unemployed.
The defendants allegedly stole EU and national subsidies aimed at helping unemployed individuals refine the skills sets needed to obtain job prospects, by submitting almost 200 false claims.
Between 2019 and 2021, the ten allegedly set up a network of fictitious companies seeking employment from applicants, in a manner that made the associated costs eligible for government reimbursement.
But according to the investigation, these “applicants” were either already employed, but had formally terminated their employment in order to be hired again, or did not fulfil the necessary criteria to be considered applicable for the subsidies to begin with.
Furthermore, it is alleged that those hired never even began the required job-related training for their new positions.
Public prosecutors did not immediately respond when asked about the nature of these fictitious companies or the applications submitted that defrauded the EU and Romanian governments.
Investigators believe that 197 people were “hired” under this scheme. Some of the suspects have been identified as public officials from Romania’s National Employment Agency in Bacău and Neamț counties, who used their credentials to make the fraud appear legitimate.
The indictment was filed at the Iași Tribunal, Romania’s fourth highest court. Prosecutors allege the total damages to be roughly €1.6 million ($1.66 million), 85 percent of which was sourced by the EU and the remainder from Romania’s national budget.
Only €300,000 ($312,000) has as of yet been recovered, EPPO said.
Two defendants have already pleaded guilty, one in March 2024 and another in June the same year. They signed plea-bargaining agreements, which were included in their confessions.
If found guilty, the defendants face a maximum potential penalty of ten-and-a-half years in prison. Each of the four companies could also be subject to fines totalling at least €420,000 ($437,000).
