The European Public Prosecutor’s Office announced on Thursday an investigation in several countries into a case involving fraud involving EU funds.
“Evidence-gathering activities were carried out in several countries, including Cyprus, the Czech Republic and Malta, in accordance with the provisions of Article 31 of the EPPO Regulation, which allow for faster cross-border investigations. In accordance with these provisions, European Delegated Prosecutors of the EPPO can request their colleagues from other participating Member States to undertake specific investigative measures, in a faster and more comprehensive manner than through traditional methods of judicial cooperation. In addition, through international cooperation, investigative measures were also carried out in Monaco, the United States and Ukraine,” the prosecutors added.
Shortly before this, G4Media.ro had revealed the involvement of two of the individuals in another IT project funded by Romania’s Recovery and Resilience Plan (PNRR): the Romanian Government Cloud, overseen by the Authority for Digitalization of Romania.
According to court records, the individuals indicted are Mihaela Cosmi, Cătălin Alin Vasile, Minel Popescu, Tiberiu George Croitoru, Răzvan Iulian Băicoianu, and Mihaela Elena Culcescu. In addition, six companies are also charged: Cymbiot Solutions, RS Next Technologies, Ars Industrial, Binbox Global Services, Itology Tech, and Business Service Consult International.
The Ministry of Investments and European Projects has joined the case as a civil party.
The defendants are accused of fraud or complicity in fraud through the use of false documents, as well as money laundering. If found guilty, they face prison sentences ranging from three to ten and a half years. The companies could face asset confiscation and fines of up to €422,000, along with additional sanctions.
In a statement released Thursday, the European Public Prosecutor’s Office (EPPO) revealed that the investigation which led to the indictment uncovered a €9.5 million fraud involving EU-funded IT projects. Investigations were also carried out in Cyprus, the Czech Republic, Monaco, the United States, and Ukraine.
“The case concerns three IT projects for the development of innovative software solutions, funded through the European Regional Development Fund (ERDF). Based on evidence gathered during the investigation, between 2019 and 2022, the beneficiaries of the projects submitted false documents to the Romanian managing authority responsible for EU funds. These documents, seemingly issued by suppliers, were used to justify the purchase of goods and services. In some cases, the documents involved fictitious commercial transactions, aimed at unlawfully obtaining approximately €9.5 million (RON 47,940,498.03) from the EU budget,” the EPPO said.
Prosecutors added that the fraudulently obtained sums were transferred to the bank accounts of the alleged supplier companies, and international firms were then used for unrelated purposes.
“Evidence collection took place in several countries, including Cyprus, the Czech Republic, and Malta, under Article 31 of the EPPO Regulation, which allows for faster cross-border investigations. Under these provisions, EPPO European Delegated Prosecutors may request their colleagues in other participating member states to take specific investigative actions more swiftly and comprehensively than through traditional judicial cooperation methods. Additionally, investigative measures were conducted in Monaco, the United States, and Ukraine through international cooperation,” prosecutors added.
G4Media.ro recently reported that Tiberiu George Croitoru, Mihaela Elena Culcescu, and Binbox Global Services are involved in tenders worth hundreds of millions of lei, organized by the Authority for Digitalization of Romania, for the implementation of the Romanian Government Cloud—a project of strategic importance. In its initial phase, this involved installing infrastructure equipment in a dedicated center monitored by the Special Telecommunications Service, located in the commune of Cristian in Brașov County.
With strong ties to Sebastian Ghiță—a businessman who fled to Serbia in late 2016 while facing arrest—the group has been part of consortiums that signed contracts worth RON 415 million for the cloud’s implementation. They are currently participating in another tender by the same Authority, submitting two separate bids for the same purpose, with a maximum value of RON 743 million. One bid, submitted together with Vodafone, involves Altitude Solution, a company founded in December 2024 by Mihaela Elena Culcescu’s brother. The other bid includes Binbox Global Services—owned by Croitoru, a former employee of the Ghiță family’s companies—as a subcontractor.