EPPO Indicts Slovakia: EU Forest Fraud Suspect Charged

• The European Public Prosecutor’s Office (EPPO) has indicted an individual in Slovakia for fraud involving an EU co-funded forest development project.
• The defendant allegedly made false revenue claims and submitted fictitious contracts to secure a non-repayable grant under Slovakia’s Rural Development Programme.
• Machinery purchased with the €192,639 grant was reportedly misused for agricultural activities instead of its intended forestry purpose.
• The alleged fraud caused an estimated damage of €192,639, with potential penalties including up to six years in prison and a €3 million fine.
• This case highlights the EPPO's role in prosecuting crimes against the financial interests of the EU and enforcing compliance with grant conditions.

This case serves as a clear example of the EPPO's commitment to safeguarding European Union funds from criminal activities.

The European Public Prosecutor’s Office (EPPO) in Bratislava has formally indicted an individual at the Slovak Specialised Criminal Court on October 8, 2026, for alleged fraud related to an EU co-funded project aimed at developing forest areas. This action marks a significant step in the EPPO's ongoing efforts to protect the financial interests of the European Union.

The charges stem from a 2018 application made by the suspect, acting on behalf of a company, for a non-repayable grant under Slovakia’s Rural Development Programme for the 2014–2020 period. This grant was substantially co-funded by the EU, which contributed 75% of the total amount, equating to €144,479. The remaining 25%, or €48,159, was provided by the Slovak state budget. The primary goal of the project was to enhance the competitiveness of forestry operations through the acquisition of modern machinery.

A crucial condition for the project's approval stipulated that at least 70% of the company's annual revenue must originate from forestry production or the provision of forestry services. To meet this requirement in the application, the defendant allegedly asserted that 100% of the company’s total turnover in 2017 came from such sources. However, subsequent evidence revealed that the company had no actual revenue during that period. Furthermore, the defendant is accused of submitting fictitious contracts for services in forestry and timber harvesting to falsely demonstrate eligibility as a beneficiary. Following the grant approval, the defendant purchased a forestry tractor and accompanying accessories, subsequently submitting a payment claim for €192,639. The investigation, however, uncovered that the machinery was never utilized by the defendant. Instead, it was reportedly lent to another company, located at the same address and managed by the defendant's partner, which then used the equipment for agricultural activities rather than its intended forestry purpose. This alleged conduct resulted in an estimated damage of €192,639.

This case falls under the purview of the European Public Prosecutor’s Office, an independent public prosecution body established by the European Union. The EPPO is specifically mandated to investigate, prosecute, and bring to judgment crimes against the financial interests of the EU, ensuring accountability for the misuse of European funds. The indictment was lodged with the Slovak Specialised Criminal Court, indicating the serious nature of the charges within the Slovak legal system.

Should the defendant be found guilty of the alleged fraud, the potential penalties are substantial. The individual could face a prison sentence of up to six years, alongside a significant fine that could reach up to €3 million. The investigation leading to this indictment received crucial support from the Office for Combating Organised Crime of the Police Force Headquarters (ÚBOK), highlighting inter-agency cooperation in tackling complex financial crimes. It is important to note that, in line with fundamental legal principles, all persons concerned are presumed innocent until proven guilty in the competent Slovak courts of law.

The EPPO's indictment underscores its active enforcement against fraud involving EU co-funded projects in member states, particularly concerning the EU rural development programme fraud indictment. This specific instance highlights the critical importance of accurate representation in grant applications and strict adherence to project conditions. The alleged actions, including false revenue claims and the submission of fictitious contracts, directly undermine the integrity of funding mechanisms designed to support vital sectors like forestry.

This case serves as a clear example of the EPPO's commitment to safeguarding European Union funds from criminal activities. The alleged misuse of a grant intended for strengthening forestry competitiveness, by diverting machinery for agricultural use, exemplifies the types of crimes against EU financial interests that the European Public Prosecutor's Office Slovakia fraud unit is determined to combat. It reinforces the message that entities receiving grants from programs like the Agricultural Payments Agency must ensure rigorous compliance with all eligibility criteria and project execution requirements to avoid severe legal repercussions.

This case underscores the EPPO's active enforcement against fraud involving EU co-funded projects in member states, particularly concerning misrepresentation in grant applications and non-compliance with project conditions. Lawyers advising clients on EU grant applications or compliance with rural development programs should emphasize rigorous adherence to eligibility criteria and project execution, as failure to do so can lead to severe criminal prosecution and penalties.

Source: Original reporting via European Public Prosecutor's Office