CENTRAL ANTI-CORRUPTION BUREAU Indictment Filed in Case Involving the Fraudulent Obtaining of Nearly PLN 33 Million in EU Funds - News

Officers of the Regional Office of the CBA in Gdańsk have concluded a complex investigation into causing the Polish Agency for Enterprise Development (PARP) in Warsaw to suffer financial losses amounting to nearly PLN 33 million. The funds originated from the European Regional Development Fund and a targeted subsidy from the state budget, granted under the Innovative Economy Operational Programme.

The investigation was conducted by the Provincial Police Headquarters in Gdańsk between 2016 and 2023.

In 2023, responsibility for the investigation was transferred to officers of the CBA Regional Office in Gdańsk.

Large-Scale Invoice Fraud

Evidence gathered by the CBA indicates that a company operating in the bakery industry submitted false declarations regarding the value of fixed assets it intended to purchase when applying for EU funding. Through personal and corporate links between companies operating in the food technology sector, the suspects fraudulently obtained public funding, certified false information in documents, and used unreliable documentation. The scheme involved staging procurement procedures, artificially inflating the value of machinery and equipment purchased with EU funding, and using false VAT invoices.

The CBA's findings also indicate that proceeds of crime were laundered through suppliers and manufacturers of machinery and equipment. The invoices, which did not reflect genuine commercial transactions, contained amounts inconsistent with the actual value of the goods and resulted in undue VAT refunds amounting to approximately PLN 10 million, to the detriment of the State Treasury.

As part of the criminal scheme, the entrepreneurs committed what is known under Polish law as invoice fraud, involving the issuance and use of 680 false VAT invoices with a total value exceeding PLN 145 million. The proceeds introduced into the financial system as a result of the criminal activity have been estimated at nearly PLN 40 million.

More Than 100 Volumes of Case Files

During the extensive multi-threaded and multi-defendant investigation, CBA officers compiled 105 volumes of principal case files and 32 annexes. Significant evidence was also obtained through international legal assistance from Italy, Switzerland, France, and Slovakia. Analytical reports prepared by the CBA exceed 150 pages.

As a result of detailed analytical work carried out by CBA officers, the prosecutor brought the first charges as early as February 2024. During the investigation, 210 witnesses were interviewed and 45 operational activities were carried out across the Pomorskie, Kujawsko-Pomorskie, Łódzkie, Mazowieckie, Małopolskie, Śląskie, Wielkopolskie, Dolnośląskie, and Lubelskie provinces.

Indictment

On 24 July this year, a prosecutor from the Regional Prosecutor’s Office in Gdańsk signed the indictment and submitted it to the Regional Court in Gdańsk. The indictment concerns ten suspects accused of, among other offences, fraud involving property of significant value, certifying false information in documents, using false VAT invoices, and money laundering.

During the proceedings, the authorities also imposed precautionary measures by securing the suspects’ assets. Property with a total estimated value of nearly PLN 43 million was seized.

CBA Press Team