EPPO France: ERDF Funding Fraud Conviction for 3 Companies, 2 Executives

• Three French companies and two executives were convicted of fraud involving €275,800 in ERDF funding.
• The fraud involved concealing that project work began before the funding application and submitting falsified documents for a waste treatment facility in the French Basque Country.
• Executives received suspended prison sentences, fines, and an eight-month ban from public office, while companies faced €275,800 in confiscation penalties.
• The defendants admitted guilt, and the full amount of the fraudulently obtained funds has been repaid.
• This conviction, stemming from an EPPO investigation, underscores active enforcement against EU funding irregularities detected by the Nouvelle-Aquitaine Regional Council.

This conviction highlights the robust enforcement capabilities of the European Public Prosecutor's Office (EPPO), an independent public prosecution body dedicated to safeguarding the financial interests of the European Union.

On September 2, 2026, the Paris Criminal Court delivered a significant judgment, convicting three French companies and two of their executives for fraud involving European Union funds. This case, spearheaded by an investigation from the European Public Prosecutor's Office (EPPO) in Paris, centered on the fraudulent acquisition of €275,800 from the European Regional Development Fund (ERDF).

The fraud pertained to a project for constructing a waste treatment and recycling facility located in the French Basque Country. The primary beneficiary company secured the €275,800 by deliberately concealing that construction activities and associated financial transactions had commenced prior to the submission of their application for EU funding. Furthermore, the investigation revealed that falsified quotations and invoices were presented to falsely represent expenditures as eligible under the grant conditions.

The irregularities were initially brought to light by the Regional Council of Nouvelle-Aquitaine, which detected discrepancies in documents supporting the funding application. Subsequently, the French Anti-Fraud Office (ONAF) conducted a thorough investigation under the direction of the EPPO. All defendants ultimately admitted to making false declarations to fraudulently obtain the EU funding and to laundering the proceeds through banking transactions, leading to the convictions following a plea agreement approved by the court.

The court imposed substantial penalties on both the individuals and the corporate entities involved in the scheme. The two executives received suspended prison sentences of eleven and ten months, respectively. Additionally, each executive was fined €20,000, with €10,000 of that amount suspended, and was barred from holding elected public office for a period of eight months.

The three French companies implicated in the fraud faced confiscation penalties totaling the full amount of the fraudulently obtained funds, €275,800. Significantly, the convicted parties have already repaid the entire sum of the funding to the regional authority responsible for managing the ERDF program within the Nouvelle-Aquitaine region. This repayment underscores the financial accountability enforced in such cases.

The judgment, which followed a plea agreement, allows the defendants a ten-day window to lodge an appeal. Should no appeal be filed within this period, the convictions and associated penalties will become final and binding.

This conviction highlights the robust enforcement capabilities of the European Public Prosecutor's Office (EPPO), an independent public prosecution body dedicated to safeguarding the financial interests of the European Union. The EPPO is specifically tasked with investigating, prosecuting, and bringing to judgment crimes that affect the EU's budget, such as the ERDF funding fraud in France.

The successful prosecution in this case, involving the misrepresentation of eligibility criteria and the submission of falsified documents, serves as a clear deterrent against similar attempts to defraud EU funds. It reinforces the message that the EPPO, in collaboration with national agencies like the French Anti-Fraud Office, is actively monitoring and pursuing instances of EU financial interests crime across member states.

The outcome of this case, particularly the EPPO France ERDF funding fraud conviction, underscores the critical importance of transparency and accuracy in applications for European Union grants. It demonstrates the serious legal and financial consequences for individuals and companies that attempt to circumvent funding regulations through deceptive practices.

This case underscores the EPPO's active enforcement against EU funding fraud, particularly concerning misrepresentation of eligibility criteria and falsified documents. Legal and compliance professionals advising clients on EU grant applications must ensure rigorous due diligence and strict adherence to funding conditions to mitigate significant financial and criminal liabilities.

Source: Original reporting via European Public Prosecutor's Office