Italian authorities criminal investigation concluded that, on the basis of information and assistance received from OLAF and the European Commission, suspected fraud network in EU-funded research projects. The investigation in Italy concerns 22 projects with a total amount of funding paid of more than 50 million euro and is part of a broader OLAF investigation.

The suspected fraudulent activities were organised in a very sophisticated manner, with the intention of deceiving the Commission's control mechanisms. The organisational structures created were deliberately opaque and span several countries. Some of the methods used are similar to those used in money laundering and other organised crime schemes.

Giovanni Kessler, OLAF Director-General, highlighted that this case shows that OLAF and the European Commission by working closely together with judicial authorities in the Member States can successfully fight fraud against the EU budget.

The investigation was initiated by the Commission (DG Information Society and Media) with the evidences collected in the course of its audit work and has been combined with information gathered by OLAF. Networks of inter-related companies operating in several Member States are suspected of claiming reimbursements of non-existent expenses in an organised manner using fictitious companies as partners or sub-contractors of research project consortia.