EPPO Romania: Indicts 5 for €1.8 Million Public Contracts Fraud

• The European Public Prosecutor’s Office in Bucharest has indicted five individuals for a €1.8 million EU-funded public procurement fraud scheme.
• The alleged criminal group operated between 2017 and 2022, targeting rural municipalities in Dolj County, Romania.
• The scheme involved manipulating 22 procurement procedures under the Human Capital Operational Programme, intended for social inclusion projects.
• Defendants are accused of preparing false documentation and using various companies to secure contracts by submitting fraudulent eligibility papers.
• Assets totaling €1.8 million have been seized, and the accused face potential prison sentences of up to ten years and six months.

The legal proceedings initiated by the EPPO underscore the European Union's commitment to protecting its financial interests.

The European Public Prosecutor’s Office (EPPO) in Bucharest, Romania, has formally indicted five individuals before the Bucharest Tribunal. These individuals face charges related to their alleged involvement in a sophisticated criminal enterprise designed to manipulate public procurement procedures within Romanian municipalities, specifically targeting projects funded by the European Union. The EPPO is an independent public prosecution office of the European Union, responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU. The Bucharest Tribunal is a legitimate and active court in Romania. The indictment, filed on Wednesday, October 16, 2026, details a scheme that operated for five years, from 2017 to 2022, resulting in an estimated financial damage of €1.8 million (approximately RON 9.5 million).

The charges assert that two of the five defendants acted as the primary orchestrators of this illicit group. Their alleged activities centered on identifying EU-funded programs and then engaging with rural municipalities located across Dolj County, situated in the Oltenia region of southwestern Romania. The ultimate goal was to defraud the public procurement system, diverting funds intended for community development and social welfare initiatives.

According to the EPPO's investigation, the alleged criminal group systematically exploited the framework of EU-funded public procurement in Romania. The two purported leaders initiated contact with the targeted municipalities, persuading them to apply for available European funding. Following this, they took responsibility for preparing the extensive documentation required for both the funding applications and the subsequent procurement processes. This meticulous preparation was a crucial step in setting the stage for the fraudulent activities.

Information regarding these tenders was then allegedly passed to the other three members of the group. These individuals, in turn, utilized various companies to participate in the procurement procedures. The indictment specifies that these companies submitted false documents, falsely asserting that they met the necessary eligibility criteria to be awarded the contracts. This elaborate deception allowed them to secure contracts under seven distinct EU-funded programs, all financed through the Human Capital Operational Programme, specifically Priority Axis 4, which focuses on social inclusion and combating poverty. These programs were designed to provide essential food aid to impoverished individuals and to organize vital workshops and training sessions for marginalized communities in rural areas. A total of 22 public procurement procedures conducted under these beneficial programs are now alleged to have been fraudulent.

The legal proceedings initiated by the EPPO underscore the European Union's commitment to protecting its financial interests. The European Public Prosecutor’s Office functions as the independent public prosecution body for the EU, tasked with investigating, prosecuting, and bringing to judgment crimes that affect the Union's budget. In connection with this case of EU-funded public procurement fraud in Romania, assets belonging to the suspects, totaling €1.8 million (RON 9.5 million), were seized earlier in the investigation, matching the estimated value of the damage caused.

If found guilty by the competent Romanian courts of law, the defendants could face significant prison sentences, ranging from three years to a maximum of ten years and six months. It is important to note that, in accordance with legal principles, all individuals involved are presumed innocent until their guilt is established through due process. This Bucharest Tribunal indictment highlights the ongoing vigilance of EPPO Romania against financial crimes targeting EU resources.

Lawyers advising clients involved in EU-funded projects in Romania, particularly in public procurement, should review their compliance frameworks and due diligence processes. This case signals continued aggressive enforcement by EPPO against fraud targeting EU financial interests, emphasizing the need for robust internal controls and transparent bidding practices to mitigate legal and financial risks.

Source: Original reporting via EPPO press release