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Wednesday, Aug 05, 2026

European Union's COVID-19 Recovery Fund: 22 Arrested for $652M Fraud, Assets Seized Including Luxury Goods and Real Estate

Twenty-two people were arrested by Italian and EU finance police in connection to an alleged COVID-19 recovery fund fraud.
Assets worth over €600 million ($652 million) were seized, including villas, luxury cars, gold, jewelry, cryptocurrencies, and illegitimately claimed tax credits for home improvements.

The group is believed to have defrauded both the European Union and Italian funding schemes.

Three groups of people were arrested in Slovakia, Austria, and Italy in connection to a fraud investigation.

The investigation involves suspects using front companies to present fake projects and claim tax credits from the Italian government's COVID recovery funds and building schemes.

Italy has received over 100 billion euros from the EU's Recovery and Resilience Facility and is also spending billions on its own building projects.

The suspects allegedly used "sophisticated fraud systems" to present fictitious projects and receive funds.

Searches were also conducted in Romania.

A organization carried out a fraud and then established a money laundering system using cloud servers in non-cooperative countries and cryptoassets.

The Italian police collaborated with the European Public Prosecutor's Office (EPPO) to investigate this crime against the EU's financial interests.

In its 2023 annual report, EPPO disclosed that they had 1,927 ongoing investigations, totaling approximately 19.2 billion euros of suspected fraud.

Italy had 618 of these investigations.
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