Lithuanian authorities and the European Public Prosecutor’s Office have uncovered a major EU subsidy fraud case involving nearly €6 million, with arrests, searches and asset freezes already carried out. The case centres on alleged organised crime, fictitious transactions, inflated costs and manipulated equipment linked to innovation projects in Lithuania.
Lithuania probes EU grant fraud
As reported by the European Public Prosecutor’s Office in Vilnius, an organised crime group is suspected of misappropriating nearly €6 million in EU structural funds intended for innovative manufacturing solutions, including recycled plastics and green concrete. The office said the investigation began in earnest in early December 2024 and was led with support from Lithuania’s Financial Crimes Investigation Service, which carried out more than 90 searches.
According to the EPPO statement, more than 100 law enforcement officers took part in the operation, and six suspects — including current and former company directors — were arrested and placed in custody for two to three months. The suspects are being investigated for participation in an organised crime group, high-value fraud, money laundering and illegal activities involving legal entities.
Alleged fraud scheme details
The EPPO said the investigation concerns fraudulent schemes allegedly carried out between 2018 and 2024, during which the group is believed to have systematically misled the administering authority in order to obtain EU funds unlawfully.
As reported by the EPPO, investigators found evidence suggesting that the suspects simulated commercial relations and fictitious financial transactions between companies under their control. The aim, according to the office, was to inflate costs fraudulently and create the impression that the companies were contributing their own funds to EU-backed projects.
The office also said equipment was allegedly physically altered to conceal its true condition, origin and price. That included repainting machines and replacing manufacturer identification plates in order to hide the identity of the actual sellers.
Companies and assets affected
The EPPO said more than 30 Lithuanian and foreign companies are suspected of involvement in the scheme. It also stated that freezing orders have already been imposed on bank accounts belonging to the suspects and legal entities, while more than 200 accounts are being analysed.
The prosecutors’ office added that the persons concerned are presumed innocent until proven guilty in the competent Lithuanian courts of law.
Related EPPO cases
The case follows other recent EPPO actions in Lithuania involving alleged misuse of EU funding. In a separate case, the Vilnius City District Court convicted members of an organised crime group over a fraudulent scheme involving EU and national funds intended for young farmers.
According to the EPPO, that judgment concluded proceedings against 26 individuals. Four organisers were found guilty and fined a total of €150,000, while 22 other participants pleaded guilty and fully compensated the EU and Lithuanian budgets for damage of about €500,000. The court also confiscated €34,000 and ordered €37,000 to be paid into the Crime Victims Fund.
The EPPO said that case involved fictitious young farmers who formally met the conditions for EU support but carried out no real economic activity. It added that forged documents, sham land transactions and fictitious financial arrangements were used to secure the aid.
In yet another case, the EPPO in Vilnius secured convictions in an attempted subsidy fraud involving nearly €2.6 million in EU funds for a biodegradable cellulose cling film project.
According to the EPPO, that scheme involved forged documents and misleading procurement information submitted to the Innovation Agency, while the equipment was sourced through companies linked to the group and its value was artificially inflated. The court imposed a total fine of €103,200 on the defendants after guilty pleas.
Wider anti-fraud context
The Lithuanian cases underline the EPPO’s increasing focus on EU budget protection, especially where public money is linked to innovation, agriculture and green transition projects. In the latest case, the suspected use of company networks, altered machinery and false transactions suggests a sophisticated effort to disguise the real flow of funds.
The EPPO has repeatedly said that fraud against EU funds damages both public finances and trust in the bloc’s support programmes. In the Lithuanian proceedings, the office has described the alleged schemes as organised, long-running and designed to secure financial gain through deception rather than legitimate economic activity.
Source attribution
As reported by the European Public Prosecutor’s Office in Vilnius, the major fraud investigation concerns nearly €6 million in EU structural funds and includes arrests, searches and asset freezes.
As reported by the EPPO, the separate young farmers case ended with convictions, fines and compensation after the court found a large-scale fraudulent scheme.
As reported by the EPPO in Vilnius, the biodegradable cling film case resulted in convictions and fines after authorities blocked the disbursement of nearly €2.6 million.
