EPPO Charges Nine Individuals and Five Italian Companies in €4.5 Million Aquaculture Fraud Case

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The European Public Prosecutor’s Office (EPPO) has filed charges against nine individuals and five companies as part of an ongoing investigation into a €4.5 million fraud involving EU aquaculture funds. This case highlights the misuse of resources allocated under the European Maritime and Fisheries Fund (EMFF) for projects aimed at advancing sustainable aquaculture.

The investigation, initially reported in December 2023, centres on fraudulent activities carried out by cooperative societies and companies operating in the aquaculture sector. The funds were intended for projects such as constructing fish tanks and refurbishing aquaculture facilities.

Evidence gathered by the EPPO reveals that the suspects used false documentation and fictitious insurance policies to secure funding. A fraudulent mechanism was also uncovered, where contracts for construction and refurbishment were awarded to companies within the same corporate structure as the beneficiaries. This allowed project costs to be inflated, leading to illicit profits.

During the application process, one company was disqualified due to an anti-mafia preventive measure, while four others received €1.4 million in advance payments. Investigators later found no evidence that the claimed work had commenced.

A subsequent request for an additional €2.6 million was denied, thanks to the swift intervention of the EPPO, which uncovered the irregularities before further disbursements could occur. The case also led to the seizure of assets totalling €4.5 million and legal actions against the suspects, including house arrests and movement restrictions.

Broader Implications and Legal Status

The EPPO has worked closely with the Italian Financial Police (Guardia di Finanza) and local Port Authorities to bring the case to light. These fraudulent practices not only compromise the financial integrity of EU funding but also tarnish the reputation of the aquaculture sector, which is critical for sustainable food production.

All individuals and entities implicated in the case are presumed innocent until proven guilty in a court of law. The EPPO, as the independent prosecution office of the EU, remains committed to ensuring that public funds are used transparently and effectively to promote sustainable development in aquaculture and other sectors.

This case underscores the importance of vigilance in protecting EU financial interests and fostering trust in programmes designed to support growth and innovation.