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Jan 20, 2024

EPPO unravels €1.6 million fraud involving futuristic water purification machines

The European Public Prosecutor’s Office (EPPO) in Venice (Italy) yesterday

The European Public Prosecutor's Office (EPPO) in Venice (Italy) yesterday seized €1.6 million, in an investigation into suspected fraud concerning the development of futuristic mobile water treatment machines, funded by the EU.

The freezing order comes in the wake of an intensive investigation, code-named ‘Water Diviner’. This investigation began in 2020, and concerned three Italian citizens and two companies, suspected of aggravated fraud against the European Union.

At stake is a start-up that promised to develop mobile water treatment machines, powered by solar energy, supposedly equipped to purify and filter water in remote areas, while also providing internet connectivity and a charging station for mobile devices.

The futuristic-looking prototypes, presented in order to secure access to EU funds, were touted as autonomous machines, capable of producing their own energy while providing clean water, electricity and Internet services to populations in developing and underdeveloped countries, thereby ensuring the well-being and sustainability of the planet.

The project received EU contributions amounting to €1.6 million, granted by the research and innovation programme ‘Horizon 2020’, as well as from the Regional Operational Programme and the European Regional Development Fund (ROP EDRF 2014/2020).

Despite the promises made, the water treatment plants were never finished, nor were the so-called ‘thermodynamic machines’ ever operational, according to the evidence collected. To cover up the project's failings, the suspects are believed to have provided fraudulent assurances to the European Commission certifying the functionality and the advancement of the project, including false water analysis results.

In addition, they are suspected of violating tendering rules and providing false statements to gain access to European Union funds amounting to €113 000, paid by the ROP EDRF 2014/2020 programme in the Friuli-Venezia Giulia region.

In order to recover the damages to the EU Budget, the judge for Preliminary Investigation of the Court of Udine, at the request of the EPPO in Venice, ordered the preventive seizure of money, financial assets, vehicles and shareholdings of the suspects, to an amount of €1.6 million.

The order, which included the seizure of the prototypes of the ‘thermodynamic machines’, already under probative seizure, was executed yesterday by the Italian Financial Police (Guardia di Finanza) of Udine, with the cooperation of the EPPO's offices in Madrid and Paris.

The investigation had its origin in a report by the European Anti-Fraud Office (OLAF), who first relayed two possible cases of aggravated fraud to the EPPO.

Furthermore, a financial control of the Spanish company involved in the project indicates that it failed to declare its permanent presence in Italy, thus avoiding the payment of fiscal duties to the Italian revenue authorities. It also failed to report its workers, mainly of Italian nationality, to the national tax authorities.

All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law.

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