EPPO Germany: Individual Arrested for €1.1M EU Subsidy Fraud

(Luxembourg, 6 November 2026) – At the request of the European Public Prosecutor’s Office (EPPO) in Berlin (Germany), an individual was arrested this week on suspicion of fraudulently obtaining over €1.1 million in EU subsidies intended for the renovation of two historic buildings. He is also suspected of deliberately setting fire to one of the buildings in an attempt to conceal the alleged fraud. The arrested suspect was the representative of two non-profit associations based in the German federal state of Saxony-Anhalt. He applied for and received EU subsidies from the European Regional Development Fund (ERDF), totalling €1 126 299, for the renovation of two historic buildings, including energy-efficiency improvements. The buildings were intended for cultural activities, following their renovation. However, according to the evidence gathered, the suspect used little or none of the funds for the renovation projects for which they had been granted. Instead, he allegedly diverted a large portion of the money into his personal bank accounts and used falsified invoices, receipts and other documents to conceal the misuse of the funds and deceive the public bank that had awarded the subsidies. The suspect is also alleged to have deliberately set fire to one of the buildings on two occasions, shortly before on-site inspections by the bank were due to take place. Both incidents were investigated by the police. In addition, the suspect submitted insurance claims to two insurance companies in connection with the fires. While one company rejected the claim, the other paid out over €258 000. The suspect was charged with subsidy fraud, arson and two counts of particularly serious fraud or attempted fraud against insurance companies. He will remain in pre-trial detention. Searches were conducted on Tuesday in Halle (Saxony-Anhalt) and also in Munich (Bavaria), where two other suspects in this case reside, and evidence was seized. To compensate the estimated damage to the EU budget and the fire insurance company, freezing orders were issued totalling approximately € 770 000. Assets have been seized, mainly in the form of bank accounts and real estate. All persons concerned are presumed innocent until proven guilty in the competent German courts of law. The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.