Following an investigation into a project involving a production line for new types of bread for toasting, two individuals and a company have had an indictment filed against them by the European Public Prosecutor’s Office (EPPO) at the regional court in Prague for a €4.1m subsidy fraud.
The defendants are accused of submitting false data and concealing substantial information to obtain €4.1m in EU funds from Czechia’s ministry of industry and trade, under the programme enterprise and innovation for competitiveness.
Based on the evidence, the suspects deliberately mislead the ministry, which paid the subsidy in full from the national budget.
The grant was not refunded by the EU, as the project was deemed ineligible for reimbursement, resulting in a total loss of €4.1m to Czechia’s national budget.
Prison
The two individuals could face between five and 10 years in prison if found guilty. Under the indictment, they may also face fines up to €20,000 and €41,000 and be banned from receiving subsidies for five years.
The company could be ordered to pay compensation of approximately €4.1m if convicted and face a fine of up to €2m and a 15-year ban on receiving subsidies.
Real estate
Earlier in this investigation, the EPPO seized assets, including real estate owned by the company, to compensate the damage.
All persons concerned are presumed to be innocent until proven guilty in the competent Czech courts of law.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.
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