Three people sentenced to prison in Italy following the revelation of a complex scam with EU funds

Three persons have been sentenced to prison by the court of first instance (tribunal) in Genoa, Italy, as a judicial follow-up to an operation run by the European Anti-Fraud Office (OLAF) and the Italian Guardia di Finanza.

The operation’s code-name was ‘Paper Castle’. Ended roughly two years ago, it had uncovered a fraud scheme that stretched over several EU Member States and involved a set of companies, some of which only existed on paper. €1.4 million were defrauded from EU funds intended to develop hovercraft prototypes – that is, emergency nautical vehicles able to reach remote areas in case of environmental accidents. Part of the money was used to pay the mortgage on an actual castle.

Last month, two people were sentenced to several years of imprisonment for the fraud scheme. The accountant who had helped create a system of fictitious companies that went from Italy to London in the UK and to Delaware (U.S.) will also have to face jail, the court ruled. With the paper castle dismantled, the actual castle was seized.

More information on the operation is available in OLAF’s related press release.

Comments

Post a Comment

Popular posts from this blog

The Delivery Delay Clause in Residential Construction Contracts: Consumer Protection in Cyprus and Europe

Image
By Giorgos Kazoleas, LL.M., Lawyer, Managing Partner at Legal Experts Cyprus The purchase or construction of a new residence is one of the most significant financial and personal decisions a consumer can make. Residential construction contracts or agreements for the sale of property under construction are a crucial and defining element of the entire process, as certain terms they may contain can be detrimental to the buyer. One of the most critical aspects is the contractual delivery time of the project and the provision for delay, through the so-called delivery delay clause. The Delivery Delay Clause: Its Role and Legal Nature The delivery delay clause (also known as a penalty clause in the event of default) is a term usually included in the contract that specifies a predetermined compensation amount that the contractor or seller must pay to the buyer for every day, week, or month of delay beyond the agreed delivery date. The purpose of the clause is twofold: -Compensatory: ...
Read more

Legislative Proposal on Mutual Admissibility of Evidence and Electronic Evidence in Criminal Proceedings in the EU by European Law Institute

Image
The  European Law Institute (ELI) Legislative Proposal provides guidance on future EU legislative action in the field. It aims at harmonising approaches in EU Member States and, through it, enhancing the principle of mutual recognition in criminal matters and the protection of human rights of suspects and accused. At present, each EU Member State follows its own rules on criminal investigative measures for evidence gathering, resulting in different standards for its admissibility. When such evidence, including electronic evidence, is to be shared with other EU Member States, a clear mechanism governing its admissibility is needed. While there have already been a number of helpful studies on the admissibility of evidence in criminal proceedings and the need for more harmonisation at EU level as well as important advances in European judicial cooperation, these initiatives have so far not comprehensively addressed the rules that should be adopted regarding the mutual admissibilit...
Read more

Moving between Member States without an identity card or passport - A fine amounting to 20% of the amount of the offender’s average net monthly income, is not proportionate to the seriousness of the offence

Image
In its Judgment in Case C-35/20 (6.10.2021) , the European Court of Justice ruled that a Member State may require its nationals to carry a valid identity card or passport when travelling to another Member State, irrespective of the means of transport used and the itinerary, subject to sanctions. While EU law does not preclude the imposition of a criminal penalty, it does preclude disproportionate penalties, such as a fine amounting to 20% of the offender's average net monthly income. A, a Finnish national, made a round trip between Finland and Estonia in August 2015 on a pleasure boat. During that trip, he crossed the international waters between Finland and Estonia. He was the holder of a valid Finnish passport, but did not have it with him during that trip. As a result, during a border check in Helsinki on his return, A was unable to produce his passport or any other travel document, although his identity could be established on the basis of his driving licence. The syyttäjä ...
Read more

The Title Deed Issue in Cyprus and the "Trapped Buyers" Phenomenon

Image
Article By Giorgos Kazoleas, Lawyer LL.M.  The issue of title deeds in Cyprus and the phenomenon of "trapped buyers" constitutes one of the greatest legal, financial, and social peculiarities of Cypriot real estate law. The Cypriot Peculiarity: Sale Without a Title Deed Under Cypriot law (pursuant to the Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224), legal ownership of a property is transferred and acquired solely upon its registration with the Department of Lands and Surveys and the issuance of the relevant Certificate of Registration (Title Deed). However, a major peculiarity exists: it is entirely legal to sell a property that does not (yet) possess a separate title deed. This typically occurs in new developments (apartment buildings or residential complexes), where the title deed for the plot of land belongs to the developer, but the separate title deeds for each apartment or house can take years to be issued due to bureaucracy, pending ap...
Read more

Landmark Murder Conviction for Illegal Street Racing in Germany

Image
Following a fatal illegal street race in Ludwigsburg in March 2025, the Stuttgart District Court (LG Stuttgart) has issued a landmark ruling. The primary defendant was sentenced to life imprisonment for murder, while his brother received 13 years for attempted murder. The race resulted in the deaths of two innocent young women when their vehicle was rammed at speeds exceeding 130 km/h in a 50 km/h zone. Intent vs. Negligence The core of the legal debate centered on the definition of intent. The defense argued for "negligent homicide," claiming the defendants never intended to kill anyone. The court applied the principle of eventual intent (dolus eventualis). It ruled that by racing at extreme speeds in a residential area, the defendants recognized the life-threatening danger and "accepted" the possibility of a fatal outcome in pursuit of the thrill of the race. The ruling utilizes Section 315d of the German Criminal Code (StGB), known as the "Raserparag...
Read more

Pretextual Threats of Collective Redundancies: A Form of Workplace Harassment (Mobbing) under Cyprus Law

Image
Written by Giorgos Kazoleas, Managing Partner Lawyer at Legal Experts Cyprus In the Cypriot labor market, personnel management is often characterized by employer practices that exploit the fear and insecurity of employees. A particularly serious issue is the pretextual threat of collective redundancies within companies and enterprises. When such a threat does not reflect a genuine need for restructuring or financial distress, but is instead used deceptively as leverage to intensify labor and suppress claims (e.g., salary increases, bonus claims, other benefits, promotions, etc.), it transforms into a form of workplace harassment (mobbing) with specific legal implications. The Specialized Legal Framework: Law 42(I)/2025 The legal handling of this phenomenon—which has reached concerning proportions in Cyprus—was decisively strengthened by the enactment of the Prevention and Combating of Violence and Harassment at the Workplace Law of 2025 (Law 42(I)/2025). This law incorporates the...
Read more

European Commission refers Poland to the Court of Justice to protect judges from political control

Image
European Commission decided to refer Poland to the Court of Justice of the EU regarding the new disciplinary regime for Polish judges, requesting an expedited procedure. On 3 April 2019, the Commission launched this infringement procedure on the grounds that the new disciplinary regime undermines the judicial independence of Polish judges and does not ensure the necessary guarantees to protect judges from political control, as required by the Court of Justice of the EU. Specifically, the Polish law allows ordinary court judges to be subjected to disciplinary investigations, procedures and sanctions on the basis of the content of their judicial decisions, including the exercise of their right under Article 267 of the Treaty on the Functioning of the European Union (TFEU) to request preliminary rulings from the Court of Justice of the EU. Moreover, the new disciplinary regime does not guarantee the independence and impartiality of the Disciplinary Chamber of the Supreme Co...
Read more