Italian authorities and the European Anti-Fraud Office (OLAF) in Brussels, Belgium, have confirmed that they are prosecuting members of a large network accused of pocketing more than €50 million (US$72 million) in EC grants for fake research projects. In Milan, Italy, the Finance Police last month charged several individuals in relation to the fraud. In Brussels, meanwhile, the EC has terminated four collaborative projects in information technology, and excluded more than 30 grant-winners from participation in around 20 ongoing projects. Investigations are still under way in the United Kingdom, France, Greece, Austria, Sweden, Slovenia and Poland.
"We don't have any records of [previous] fraud at such a scale," says David Boublil, the commission's spokesman for taxation, customs, anti-fraud and audit. While investigations continue, Italian prosecutors and OLAF will not disclose the names of the suspects, or the research projects with which they were involved.
The fraud has been conducted in a "highly sophisticated manner, resembling money laundering", by means of a cross-border network of fictitious companies and subcontractors, says Pavel Bořkovec, a spokesman for OLAF. Several project coordinators stand accused of having claimed inflated costs, or expenses for non-existent research activities and services, he says.
Friday, June 17, 2011
New Mafia Tricks