The pre-trial investigation into the attempt to fraudulently obtain EUR 200,000 in EU financial support funds has been completed

The European Prosecutor's Office together with the Special Investigation Service (STT) completed the pre-trial investigation regarding the attempt to fraudulently obtain EUR 200,000 in European Union (EU) financial support funds. This pre-trial investigation was organized and led by the Office of the European Delegated Prosecutors in Lithuania.

An indictment was filed against nine individuals and two companies, for fraud involving EU funds to build a retirement home. It is alleged that, between 2019 and 2022, an organised group consisting of nine individuals attempted to fraudulently obtain €200 000 from the EU’s Structural Fund. They are accused of falsifying documents and submitting them to state institutions to fraudulently obtain EU funding for the planned construction of a retirement home. 

According to the evidence, financial accounting documents from at least four companies were falsified, to demonstrate the economic viability of one of the accused companies. Based on the investigation, however, this particular company neither engaged in commercial activities nor met the criteria for receiving a subsidy.

The investigation also revealed grounds to suspect that the terms of the public procurement call had been agreed upon with a pre-selected contractor, which was led by individuals who acted as accomplices.

The nine individuals and two companies are charged with falsifying documents and disposing of false documents, obtaining EU financial support by fraud, fraudulent financial accounting, abuse and embezzlement.

Almost €31 000 of the total of €200 000 of requested EU funding was paid out. After STT opened an investigation, the suspects fully compensated the financial damage. If found guilty, the defendants could be sentenced to up to 7 years of imprisonment.

"This criminal case is the result of close procedural cooperation between the European Prosecutor's Office and STT, as well as careful and intensive work. After the officers and intelligence analysts of STT conducted a detailed investigation, analysed numerous economic financial transactions, construction contract documentation, data of computer devices, correspondence, contacts and other data, sufficient evidentiary information was collected, which made it possible to make a decision to transfer this criminal case to court," said European Delegated Prosecutor Jolita Kančauskienė.

"Investigations of embezzlement of EU funds are one of the priority directions of the STT, next to investigations of systemic, political and international corruption. Cases of fraudulently obtaining EU subsidies not only cause reputational damage to Lithuania, decrease trust in the authorities in the country, but also prevent the fair distribution of public resources," said Žydrūnas Krampalcas, head of the STT Klaipėda board.

All persons concerned are presumed to be innocent until proven guilty in the competent Lithuanian courts of law.