When carrying out innovation projects the companies acquired equipment from interested parties for inflated prices. They imitated transactions and declared purchasing various modern machinery or production lines related to sustainable energy. Old machinery which cost EUR 100,000 was declared in documents as modern equipment valued EUR 1 million. This way the Innovation Agency was misled.

Equipment was repainted and its labels changed to conceal the true costs, whereas the actual sellers and prices were not disclosed.

The probe was launched in 2021 when an instance of fraud was identified. The investigation later expanded and was carried out in cooperation with the European Public Prosecutor’s Office.

Thirty Lithuanian and foreign companies are suspected to be part of the fraud scheme. Companies that were paid hundreds of thousands of euros had to carry out projects for 3-4 years but some of them are now undergoing bankruptcy.

Six suspects have been detained for 2-3 months.

The group is suspected to have unlawfully obtained EUR 6 million, but failed to swindle EUR 6 million more in 2024-2025 as new contracts were terminated when law enforcement informed the Innovation Agency.

Swindling is punishable by up to 8 years in prison, while acquisition of property obtained by criminal means is punishable by up to 7 years in prison.

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