EPPO Italy: Freezes €6M In Fictitious Employee Training Fraud

• The European Public Prosecutor's Office (EPPO) in Naples, Italy, directed searches and seizures on September 24, 2026, as part of an investigation into suspected fraud.
• A waste-management company and a cooperative are alleged to have used fictitious employee training courses to unlawfully obtain over €6.6 million from Italy's New Skills Fund and €500,000 in tax credits.
• The New Skills Fund is a workforce training program co-financed by the European Social Fund Plus (ESF+), making the alleged fraud impact EU financial interests.
• The Guardia di Finanza is executing an urgent freezing order of €6 million at the EPPO's request, while a parallel investigation into bankruptcy-related offenses is also underway.
• The proceeds of the alleged fraud were reportedly used to finance the companies’ business activities, including payments to employees and suppliers.

The active involvement of the European Public Prosecutor's Office, alongside the Guardia di Finanza Salerno fraud investigation, signals a robust commitment to safeguarding EU financial interests against fraudulent schemes.

On September 24, 2026, the European Public Prosecutor's Office (EPPO) in Naples, Italy, directed the Economic and Financial Police Unit of the Italian Financial Police, known as the Guardia di Finanza, in Salerno to conduct searches and seizures. These actions are part of an ongoing investigation into suspected fraud involving fictitious employee training courses. The probe originated from a tax audit performed by the Guardia di Finanza in Salerno during 2025, which initially focused on a company operating within the waste-management sector.

Investigators allege that a cooperative issued invoices for employee training courses that were never actually provided to the workers of the waste-management company. This scheme of fictitious training activities was reportedly utilized to bolster applications for public funding specifically designated for promoting workforce training and skills development. Through these alleged fraudulent means, the company is believed to have unlawfully secured over €6.6 million from Italy's New Skills Fund, a significant workforce training program that receives co-financing from the European Social Fund Plus (ESF+). Furthermore, the investigation indicates that an additional €500,000 in tax credits, also linked to employee training, was illicitly claimed.

In response to these findings, the Guardia di Finanza is currently executing an urgent freezing order for €6 million, issued at the request of the EPPO. This measure aims to secure assets potentially linked to the alleged fraud. The EPPO's involvement underscores the case's connection to suspected fraud affecting the financial interests of the European Union, given the EU co-financing of the New Skills Fund.

The European Public Prosecutor's Office, an independent public prosecution body for the European Union, is specifically tasked with investigating, prosecuting, and bringing to judgment crimes that impact the EU's financial interests. This particular investigation into EPPO Italy fictitious employee training fraud falls squarely within its mandate, focusing on the misuse of funds like those from the New Skills Fund, which are partially supported by the European Social Fund Plus. The alleged fraud, therefore, directly concerns the integrity of EU public spending intended for critical social and economic development initiatives.

In a coordinated effort, the Public Prosecutor's Office at the Court of Nocera Inferiore in Italy is simultaneously conducting its own investigation. This parallel inquiry focuses on suspected bankruptcy-related offenses involving the same individuals implicated in the EPPO's fraud investigation. The searches and freezing measures carried out by the Guardia di Finanza were meticulously coordinated between both prosecution offices, demonstrating a comprehensive approach to addressing the various facets of the alleged criminal activity. It is important to note that, in accordance with legal principles, all individuals involved in this case are presumed innocent until their guilt is proven in the competent Italian courts of law.

This extensive Italy New Skills Fund fraud investigation highlights the significant risks associated with public funding and tax credit schemes designed for workforce development. The alleged total amount of illicitly obtained funds, exceeding €7.1 million (comprising over €6.6 million from the New Skills Fund and €500,000 in tax credits), represents a substantial diversion of resources. These funds, intended to genuinely enhance employee skills and promote economic growth, were instead allegedly used to finance the companies’ general business activities, including making payments to employees and suppliers.

The active involvement of the European Public Prosecutor's Office, alongside the Guardia di Finanza Salerno fraud investigation, signals a robust commitment to safeguarding EU financial interests against fraudulent schemes. Cases like this underscore the heightened scrutiny on companies and cooperatives that claim public funding or tax credits for employee training, particularly when these programs are co-financed by the EU. It serves as a critical reminder of the need for stringent verification processes to ensure that training services are legitimately provided and that public funds are utilized for their intended purpose, thereby combating employee training public funding fraud.

Compliance officers and legal counsel advising companies in Italy, particularly those receiving public funding or tax credits for employee training, should review their internal processes to ensure the legitimacy of training providers and the actual provision of services. This case highlights the EPPO's active pursuit of fraud affecting EU financial interests, signaling increased scrutiny on schemes involving fictitious training to unlawfully obtain funds like the New Skills Fund or related tax credits.

Source: Original reporting via EPPO press release