Polish prosecutors have submitted a final indictment to a Kielce court against nine individuals accused of defrauding EU funds from PARP.
EU Funds Fraud Indictment Filed
Krakow’s Regional Prosecutor’s Office has sent an indictment to the Kielce court against nine individuals accused of fraudulently obtaining EU funding from the Polish Agency for Enterprise Development (PARP). This is reportedly the final indictment in the case, following five previous indictments against a total of 37 defendants.
According to Janusz Kowalski, spokesperson for the Regional Prosecutor’s Office in Krakow, the extensive, nearly 500-page indictment charges the nine individuals with jointly committing three counts of fraud. They face up to 15 years in prison if convicted.
Fraud Scheme Details
Investigators allege that between 2012 and 2016, the accused fraudulently obtained funding from PARP, sourced from EU funds, totaling approximately 824,000 zł, 916,000 zł, and 513,000 zł. These funds were intended to cover the costs of IT projects between businesses.
The scheme involved inflating the costs of expenses eligible for reimbursement. Perpetrators planned and reported expenses higher than those actually incurred to receive a larger refund than they were entitled to, Kowalski explained.
Inflated Costs and False Invoices
The primary method of inflating costs involved artificially increasing the prices of purchased goods or services. This was achieved through unreliable VAT invoices issued by an intermediary, for which the beneficiary incurred expenses qualifying for EU funding (so-called eligible costs), acquiring goods or services at prices significantly above market value.
Shell Company Operations
Investigations revealed that a company executing IT projects for businesses only issued VAT invoices and did not perform any actual services.
Case Conclusion and Asset Seizures
This latest indictment concludes the investigations into the fraudulent acquisition of EU funds from both PARP and the Marshal’s Office of the Świętokrzyskie Voivodeship. A total of five indictments have been submitted to the District Court in Kielce against 37 individuals.
To cover potential fines, forfeitures, and damages, assets have been secured through mortgages on properties, bank account seizures, shares in companies, and claims on pension benefits, totaling over 15 million zł.