The European Public Prosecutor’s Office (EPPO) has ordered the arrests of 12 individuals and the seizure of over €9.6 million in assets in Italy, as part of an investigation into a case of EU funding fraud pertaining to the Common Agricultural Policy (CAP).

According to EPPO, the investigation features 67 individuals and 27 companies, who it said are suspected of fraudulently obtaining EU agricultural funds under the CAP between 2018 and 2022.

The Italian Financial Police of Caserta (Guardia di Finanza – Compagnia di Mondragone) in Naples executed the arrest and seizure order, which was reinforced by the Court of Salerno in Naples, as part of preliminary police investigations into the case.

According to the prosecutor, the suspects unlawfully secured over €12.5 million in EU funding, by falsely presenting one of its companies, based in Salerno, as a so-called producer organisation (PO).

A PO is a recognised group of farmers who are entitled to receive EU funding in support of collective investments for their members’ benefit.

In a statement about the investigation, the EPPO cited evidence which suggests that the suspects involved falsified several documents to fraudulently misrepresent the company’s compliance with the essential requirements of PO status under EU law. 

According to the prosecutor, the company under investigation allegedly deceived the Campania region, Italy’s Agricultural Payments Agency (AGEA) and the EU, by unduly receiving EU agricultural subsidies financed under the CAP.

The EPPO statement, which was published today, Wednesday, May 7, confirmed that the perpetrators of these offences are now under investigation by Italian authorities for alleged aggravated fraud to obtain public funds and criminal association.

As a result of the investigation, the Italian Financial Police has placed 12 individuals under house arrest and has seized financial assets belonging to them and to the involved companies totalling €9,660,813.89.

"All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law," the EPPO statement outlined.

The 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.