Six individuals and one company in Croatia have been convicted of fraud and forgery in a case involving pig farming.

The conviction followed an investigation from the European Public Prosecutors Office (EPPO), which found that money intended for improving pig welfare had been defrauded through document forgery.

A number of people, including the former and then current president of the management board of the company in question, along with the chairperson and a member of its supervisory board, submitted multiple funding requests worth over €9 million.

The funding requests were submitted under Croatia's Rural Development Plan for 2014-2020, meaning the money was sought under Pillar II of the Common Agricultural Policy (CAP).

This funding was designed to compensate beneficiaries for lost income and additional costs incurred due to the implementation of obligations which surpass basic legal provisions or common practices in pig breeding and fattening.

The EPPO said that although the defendants were aware that their company did not meet the requirements for funding, they nonetheless submitted false declarations for their subcontractors' farms.

The company received more than €5.4 million in EU funding, of which €4.7 million was found to have been fraudulently obtained.

The relevant authorities in Croatia withheld payment of €3.6 million in 2022 when it identified irregularities in the company's actions, after which it issued an order clawing back misappropriated funds, eventually recovering around €1.5 million.

The verdict announced by the EPPO is the result of a plea bargin, as the convicted pleaded guilty to all charges.

A Croatian court sentenced the former chairperson of the supervisory board to 11 months in prison, which was then replaced by community service and a fine of €1.5 million.

The former member of the supervisory board and the president of the management board were both sentenced to 11 months in prison, also replaced by community service and a fine of €150,000.

Three defendants have been sentenced to prison for the terms of eight months, which they will not have to serve unless they commit another criminal offence within two years.

During the investigation, the accused company returned the misappropriated funds amounting to over €3.2 million. In addition, the court verdict imposed a €1.5 million fine on the company.

Proceedings against the remaining three defendants are continuing in Croatia, the EPPO said.