The European Public Prosecutor’s Office (EPPO) in Bologna is leading an investigation into a suspected 1 million euro fraud involving EU Recovery and Resilience Facility funds earmarked for the digitalization and international expansion of Italian businesses.

The case, uncovered through an operation by the Guardia di Finanza in Macerata, centres on an entrepreneur who allegedly orchestrated a scheme across several e-commerce companies under his control. The suspected fraud targeted SIMEST, Italy’s state-backed institution supporting the international activities of Italian firms, which administers subsidised loans and grants for the development of foreign-facing digital sales platforms under Italy’s National Recovery and Resilience Plan.

According to investigators, the companies involved submitted false invoices and fabricated project documentation to create the appearance that e-commerce platforms had been developed for client businesses. In reality, no such projects were ever carried out. Once the fraudulently obtained funding was disbursed, the beneficiary companies transferred the money back to entities controlled by the scheme’s organiser, ostensibly as payment for services that were equally fictitious. Further false invoicing was then used to redistribute and conceal the funds among participants.

Of the estimated 1 million euros in fraudulent claims, 500 000 euros had already been disbursed before the scheme was detected. Following the EPPO investigation, a further 500 000 euro payment was blocked and recovery proceedings were initiated. Seven individuals and five companies are under investigation for aggravated subsidy fraud, misappropriation of public funds, money laundering and related offences. Three suspects and one company have already entered plea bargain proceedings, returning approximately 270 000 euros in total.