Questions and Answers
What specific type of fraud was committed by the defendants in relation to EU funding?
The defendants committed document forgery and fraudulent account management.
How did the business owner artificially inflate the costs of the equipment?
The business owner collaborated with suppliers to falsify invoices and documents.
What total amount was fraudulently gained that caused damage to the EU budget?
The fraudulent activities caused €580,000 in damage to the EU budget.
What were the penalties handed down by the court to the convicted defendants?
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What was the outcome for the defendants after they pleaded guilty and repaid the damage?
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What percentage of offences investigated by the EPPO by the end of 2023 concerned non-procurement expenditure fraud?
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Name two sectors identified by the EPPO where patterns of EU funding fraud were observed.
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What is one method by which fraudsters have manipulated eligibility for EU subsidies?
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What type of costs have been fraudulently inflated in subsidy claims, according to the EPPO?
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In relation to the Covid-19 pandemic, what specific fund was mentioned as being targeted by fraudsters?
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Study Notes
EPPO Investigations and Non-Procurement Expenditure Fraud
- By the end of 2023, non-procurement expenditure fraud made up about 34% of EPPO investigations.
- This fraud type involves presenting false or incomplete documentation, leading to misappropriation of EU funds or managed budgets.
- Common sectors affected include agriculture, fisheries, healthcare, social affairs, and research and innovation.
Covid-19 Recovery Fund Fraud
- Covid-19 related recovery funds, specifically those under the European Commission’s Recovery and Resilience Facility, were frequently targeted by fraudsters.
- Fraud patterns include:
- False declarations to meet funding requirements, such as concealing criminal convictions.
- Inflated costs or false invoices to increase claimed subsidies.
- Reimbursement requests for services not actually rendered.
- Manipulated financial statements to misrepresent costs.
- Double funding from different authorities for the same activity.
Case Study: Covid-19 Funding Fraud Conviction
- On October 12, 2023, six individuals and one company were convicted in Lithuania for a €580,000 fraud case linked to Covid-19 protective materials.
- A business owner falsely claimed EU funding for machinery to produce protective equipment.
- Investigation uncovered supplier collusion to inflate equipment costs through falsified documents.
- The inflated expenses resulted in higher funding received, causing significant damage to the EU budget.
- The court imposed suspended sentences of 9 months to 1 year, along with fines between €19,000 and €150,000, with reductions due to the defendants’ guilty pleas and repayments.
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Description
Explore the insights on non-procurement expenditure fraud as identified by the EPPO by the end of 2023. This quiz covers the nature of fraud affecting EU budgets and the implications for financial management. Test your understanding of the mechanisms and consequences involved in these fraudulent activities.
