CRIMINAL CAPITALI$M
Lithuania: Nine suspects detained in probe into €4 million fraud involving Covid-19 equipment

Published on 26 April 2024



(Luxembourg, 26 April 2024) – Last week, 40 searches were conducted and nine suspects were detained, in an investigation led by the European Public Prosecutor’s Office (EPPO) in Vilnius (Lithuania) into a €4 million subsidy fraud. At issue are four projects co-funded by the EU, including one for the production of Covid-19 protective equipment.

According to the investigation, the suspects sought to fraudulently obtain EU and Lithuanian funds under the 2014-2020 EU Funds Investment Programme, by submitting four projects to Lithuania’s Innovation Agency, on behalf of two companies. The aim of one of the projects was the production of items for the prevention of Covid-19, including disinfectant liquids and personal protective equipment. The three other projects aimed to install new packaging production lines and equipment, in order to increase the companies’ productivity.

The suspects are alleged to have used eight companies, some of which have no activity, in order to camouflage the fraud. Based on the evidence, once the projects were approved, the suspects used affiliated companies and simulated transactions between them in a circular manner, thus concealing the real value of the purchase of the required equipment. It is understood that the suspects artificially inflated the prices of the equipment, creating the impression that the funding beneficiaries had sufficient financing for their own contribution to the projects.

In doing so, the suspected fraudsters obtained over €4 million in funds, which is more than the cost of the equipment for the projects.

The investigative measures were carried out by Lithuania’s Financial Crime Investigation Service (Finansinių nusikaltimų tyrimo tarnyba – FNTT). During the searches, officers seized documents and evidence relevant to the investigation, as well as over €20 000 in cash. The suspects’ bank accounts were also frozen and several assets were seized, including real estate and plots of land.

Two of the suspects will remain in pre-trial detention. Two other suspects will remain under police surveillance, wearing electronic tracking devices. The remaining five have been prohibited from changing their place of residence.

All persons concerned are presumed to be innocent until proven guilty in the competent Lithuanian courts of law.

The European Public Prosecutor’s Office (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.