Venice EPPO Secures Convictions in €6.3M EU LNG Funding Fraud Case

The European Public Prosecutor’s Office (EPPO) in Venice, Italy, has obtained convictions against three individuals—two administrators and one employee of a consortium company—in connection with the misappropriation of European Union funds allocated for the development of Italy’s liquefied natural gas (LNG) network.

The case centers on activities that took place between 2016 and 2021, during which the now-defunct consortium received €6,351,088.56 in EU funding. These funds were intended to support the management and promotion of multiple initiatives linked to the construction and operation of natural gas refuelling infrastructure in port areas. Among the projects were efforts aimed at facilitating the transition away from conventional maritime fuels, including the development of prototype LNG containers.

Financial support for the initiatives was provided through the Connecting Europe Facility (CEF) programme, with funding awarded by the European Climate, Infrastructure and Environment Executive Agency (CINEA) in cooperation with Italy’s Ministry of Infrastructure and Transport.

However, investigations revealed that a substantial portion of the allocated funds—amounting to €5,586,487.03—was misused and diverted from its intended purposes. Authorities determined that the consortium lacked the necessary organisational capacity, technical know-how, and qualified personnel required to carry out the projects. Furthermore, EU funds were improperly used to pay individuals without relevant technical expertise, to finance activities unrelated to the approved projects, and even to cover personal expenses. The company was ultimately declared bankrupt by the Court of Padua on 3 June 2021.

The probe, conducted with the assistance of the Italian Financial Police (Guardia di Finanza) in Venice and Rome, also uncovered fraudulent practices including the issuance of invoices for non-existent transactions and the manipulation of accounting records. These actions misled both the Italian Ministry of Infrastructure and Transport and CINEA regarding the true use of the funds.

On 9 April 2026, the Court of Padua handed down its verdict, convicting the three defendants and imposing prison sentences ranging from one year and eight months to six years and two months. One individual was acquitted, while two additional suspects had previously chosen to resolve their involvement through plea bargain agreements. In addition to the prison terms, the court ordered the confiscation of €1.97 million.

The EPPO, which operates as the independent public prosecution office of the European Union, is tasked with investigating, prosecuting, and bringing to court crimes that affect the financial interests of the EU.

By fLEXI tEAM