December 14, 2023

EU investigates US$4.9 million fraud allegations against Italian aquaculture producers

Three Italian aquaculture producers are under investigation by the European Union for suspected fraud amounting to approximately EUR 4.5 million (US$4.9 million), Fish Farmer reported.

According to the European Public Prosecutor's Office (EPPO), coercive measures have been decreed against these aquaculture producers following an investigation in Palermo and Rome. The producers are accused of committing fraud related to EU maritime and fisheries funds.

The EPPO statement revealed that the implicated companies operate in the aquaculture sector, with their headquarters located in the province of Rome and offices in Petrosino, Rome, Guidonia, and Piombino. This network of companies covers the entire supply chain, from fish breeding to sushi production for supermarkets and restaurants, serving markets across Italy.

The investigation alleges that the companies in question secured around EUR 4.5 million (US$4.9 million) from the regions of Sicily, Lazio, and Tuscany under the European Maritime and Fisheries Fund (EMFF) Operational Programme between 2014 and 2020. The funds were intended for projects related to the construction and refurbishment of production sites.

The EPPO uncovered a fraudulent mechanism in which the construction and refurbishment works were assigned to a company within the same corporate structure as the beneficiary companies. This allowed for the inflation of project costs, enabling the organisation to obtain illicit profits that were diverted for purposes other than those outlined in the projects.

The EPPO warns that the investigated facts could potentially involve criminal association for committing aggravated fraud to obtain public financing, money laundering, and fraudulent transfer of funds.

-      Fish Farmer