Romanian authorities have arrested an Italian national suspected of masterminding a 100 million euros ($103.22 million) subsidy fraud scheme. The arrest is part of an ongoing investigation into a criminal organization with potential mafia links.
The European Public Prosecutor’s Office (EPPO) stated Monday that the suspect was detained at Bucharest airport last week and has since been placed in pre-trial detention at the EPPO’s request.
Two additional suspects believed to be part of the same criminal network are currently under judicial supervision.
According to investigators, the criminal group used two Italian companies to participate in tenders organized by Romanian public authorities to secure EU funding for construction and infrastructure projects, including the rehabilitation of drinking water and sewage systems. These companies partnered with Romanian firms as associates or third-party supporters to access the funds.
One of the Italian companies under investigation had previously been barred from receiving public contributions under Italy’s anti-mafia regulations, which should have disqualified it from accessing EU funding.
Between 2014 and 2020, the suspects reportedly took part in 18 tenders funded through the Large Infrastructure Operational Program, with a total value of 240 million euros ($247.46 million). They managed to win eight contracts worth more than 100 million euros, according to the EPPO.
To meet tender requirements, the group allegedly submitted falsified documents, including fabricated balance sheets that claimed an annual turnover of over 50 million euros for the Italian companies—30 times higher than their actual revenue.
Despite winning the contracts, investigators found that the Italian companies failed to deliver any work or services. Instead, all project execution was handled by their Romanian partners.
