In a sweeping crackdown on alleged fraud linked to the European Union's post-pandemic recovery fund, authorities have arrested 22 individuals and seized assets valued at more than $650 million across multiple countries.
Following an extensive investigation spearheaded by the EU prosecutor, eight individuals were apprehended, while 14 were placed under house arrest and two were prohibited from practicing their professions.
The arrests happened in Italy, Austria, Romania, and Slovakia, with a sophisticated network involved in fraudulent activities.
The Italian financial police announced on Thursday the seizure of a staggering array of luxury goods including Lamborghinis, Porsches, Rolexes, Cartier jewelry, cryptocurrencies, opulent villas, and other high-value items.
These confiscations were the outcome of numerous raids conducted on residential properties and offices as part of the operation.
The alleged fraud scheme has sent shockwaves across the European Union, igniting fresh concerns regarding the misuse of the EU's substantial €800-billion recovery fund aimed at strengthening the bloc's economy post-pandemic. Italy, the primary beneficiary, received grants exceeding €194 billion from this fund.
According to the European Public Prosecutor’s Office (EPPO), a criminal organization stands accused of orchestrating a fraudulent operation spanning from 2021 to 2023 to exploit Italy’s recovery packages.
Initially, the group purportedly applied for non-repayable grants, ostensibly to aid small- and medium-sized businesses. However, the EPPO disclosed that the perpetrators fabricated false balance sheets to present these entities as active and profitable when, in reality, they were non-existent or fictitious.
Having secured approximately €600 million from the Italian National Recovery and Resilience Plan (NRRP), the group purportedly transferred the ill-gotten funds to bank accounts located in Austria, Romania, and Slovakia, according to the EPPO.
The investigators stated, that the group utilized sophisticated tools such as cryptocurrencies, artificial intelligence, and offshore cloud servers to execute and conceal their fraudulent activities.
In the United States, efforts to combat fraudulent activities related to pandemic relief have been underway, with a federal watchdog cautioning in June about the distribution of over $200 billion in potentially fraudulent post-pandemic funds by the Small Business Administration.
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