Romanian authorities arrested last week two suspects tied to an employment fraud scheme, where they allegedly obtained state and EU funds under the false pretenses of employing and training unemployed individuals.
Prosecutors allege that the duo defrauded the Romanian and EU governments of roughly €166,000 ($171,000) by lying that the funds were to go towards hiring vulnerable persons, who otherwise had little hope of gaining employment.
According to the European Public Prosecutor’s Office (EPPO) in Timișoara, between 2020 and 2023, the suspects sought funding from the European Social Fund for multiple projects that necessitated 34 hires over a 12-month period.
However, authorities allege that they instead drew up false employment contracts and payrolls for 34 fictitious employees, and instead pocketed the money. The investigation revealed that no one who was supposedly hired by the duo ever received a salary.
Prosecutors reported the seizure of real estate and bank accounts believed to be tied to the stolen funds.
The two unidentified individuals are also linked to a grander fraud scheme involving no less than nine other suspects, charged with forgery and subsidy fraud.
The EU’s independent public prosecution office also laid charges in a similar employment fraud case in January 2025 against 14 other suspects, tied to the theft of €1.6 million ($1.66 million) that was supposed to go towards hiring 197 unemployed workers in Romania.
“In order to do so, they allegedly submitted inaccurate or false documents…supporting the claims for obtaining subsidies for organising the apprenticeship schemes,” an EPPO Press Officer told OCCRP. “The companies included retail stores, located in disadvantaged areas where finding a job is difficult, and companies that were controlled by the defendants and were allegedly used just to obtain the funds.”
The purpose of such programs is to promote grants for apprenticeships, thereby improving the livelihood of unemployed minority persons as well as those struggling to find work in rural areas.
