EPPO seizes assets in Sardinia in connection with a "phantom" beach kiosk project

Two suspects are accused of having woven a web of lies – involving a "front man" and counterfeit guarantees – to obtain 170,000 euros for a business that never existed.

Rome, January 22, 2026 – At the request of the European Public Prosecutor's Office (EPPO) in Rome, the Italian Financial Police (Guardia di Finanza) carried out a significant seizure operation in Sardinia. The operation targets a suspected subsidy fraud case involving a business project in the La Maddalena archipelago, which authorities say was never actually implemented. The seizure of assets worth 94,000 euros marks a key step in recovering funds intended to boost local tourism, but which may have been diverted for personal purposes.

In short

Italian authorities have confiscated 94,000 euros in cash, vehicles, and shares from properties, following an order from the Tempio Pausania Court.

The investigation targets a grant of approximately 170,000 euros intended for the construction of a kiosk on Cardellino beach, which remains unbuilt.

The suspects allegedly used a "front man" to circumvent legal restrictions and submitted counterfeit guarantees to unlock the funds.

The investigation focuses on two individuals suspected of orchestrating a scheme to fraudulently obtain public funding totaling approximately 170,000 euros. This funding package was a mix of European and national resources: 50% was provided through EU grants, while the remaining 50% was guaranteed through national support instruments designed to assist small and medium-sized enterprises (SMEs). The stated purpose of the funds was to build and operate a tourist kiosk on the picturesque Cardellino beach in La Maddalena. However, investigators found that, despite the availability of funds, the project was never completed.

According to the EPPO, the suspects – acting as the legal representative and de facto administrator of the beneficiary company – used sophisticated methods to defraud the system. To evade legal rules regarding business incompatibility, they allegedly used a "fictitious registration," transferring the company to the name of a third party (a "front man" or "straw man"), while maintaining real control behind the scenes.

Furthermore, the deception extended to the financial documentation submitted to authorities. To obtain the initial funds and keep them despite the lack of progress, the suspects are accused of submitting false or misleading documents. These included fabricated tax documents to simulate financial health and, crucially, a counterfeit guarantee (a guarantee policy) intended to assure the funding body that the investment was protected.

To ensure the possible recovery of damages caused to EU and national budgets, the investigating judge of the Tempio Pausania Court ordered preventive seizure. The Guardia di Finanza quickly acted to block the assets corresponding to the alleged proceeds of the crime. These assets include funds held in various bank accounts, shares in the company, vehicles, and a share of property from a residential building.

https://2eu.brussels/ro/stiri/eppo-pune-sub-sechestru-active-in-sardinia-in-legatura-cu-un-proiect-fantoma-de-chiosc-pe-plaja