Spain: Three convicted for €3.8 million agricultural subsidy fraud in first verdict after trial in Spanish courts

A company and two of its legal representatives were convicted for a €3.8 million subsidy fraud involving agricultural funds, in the first verdict delivered after a trial by Spanish courts, following an investigation by the European Public Prosecutor’s Office (EPPO) in Madrid (Spain).

The Central Criminal Court of Spain sentenced the two defendants to one year's imprisonment and a fine of €3 million. The court also fined the company €3 million and imposed a three-year ban on receiving public subsidies or public funds. In addition, the company will have to reimburse €2 million in funds illegitimately obtained, and the company directors were held to be joint and severally liable.

In 2018, the company applied and obtained a subsidy from the Spanish Agricultural Guarantee Fund (SAGF) for the improvement of its facilities for the production of fruit and vegetables. Following this, the defendants also requested a loan from the Catalan Institute of Finance and the Directorate General of Industry, in clear breach of the terms and conditions of the subsidy, which established that the funding could not be cumulated with other grants.

The verdict, issued on 30 June 2025, marks the first judicial decision delivered after a trial in a case investigated by the EPPO in Spain, following a series of prior convictions obtained through plea agreements, and is still subject to appeal. (source: eppo.europa.eu/photo: freepik.com)

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