A company and two of its legal representatives have been convicted by Spanish courts for a €3.8m subsidy fraud involving agricultural funds.
This was the first verdict delivered, following an investigation by the European Public Prosecutor’s Office (EPPO) in Madrid.
The central criminal court of Spain sentenced the two defendants to one year imprisonment and a fine of €3m.
The court also fined the company €3m and imposed a three-year ban on receiving public subsidies or public funds.
In addition, the company will have to reimburse €2m in funds illegitimately obtained and the company directors were held to be joint and severally liable.
Background
In 2018, the company applied and obtained a subsidy from the Spanish Agricultural Guarantee Fund (SAGF) for the improvement of its facilities for the production of fruit and vegetables.
Following this, the defendants also requested a loan from the Catalan Institute of Finance and the Directorate General of Industry.
This action was in clear breach of the terms and conditions of the subsidy, which established that the funding could not be cumulated with other grants.
The verdict, issued on 30 June 2025, marks the first judicial decision delivered after a trial in a case investigated by the EPPO in Spain, following a series of prior convictions obtained through plea agreements, and is still subject to appeal.
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A company and two of its legal representatives have been convicted by Spanish courts for a €3.8m subsidy fraud involving agricultural funds.
This was the first verdict delivered, following an investigation by the European Public Prosecutor’s Office (EPPO) in Madrid.
The central criminal court of Spain sentenced the two defendants to one year imprisonment and a fine of €3m.
The court also fined the company €3m and imposed a three-year ban on receiving public subsidies or public funds.
In addition, the company will have to reimburse €2m in funds illegitimately obtained and the company directors were held to be joint and severally liable.
Background
In 2018, the company applied and obtained a subsidy from the Spanish Agricultural Guarantee Fund (SAGF) for the improvement of its facilities for the production of fruit and vegetables.
Following this, the defendants also requested a loan from the Catalan Institute of Finance and the Directorate General of Industry.
This action was in clear breach of the terms and conditions of the subsidy, which established that the funding could not be cumulated with other grants.
The verdict, issued on 30 June 2025, marks the first judicial decision delivered after a trial in a case investigated by the EPPO in Spain, following a series of prior convictions obtained through plea agreements, and is still subject to appeal.
Read more
Charges filed against two Croatians for alleged CAP fraud
Bribes worth €10m from farmers to Slovak officials uncovered
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