Romanian prosecutors raid Bucharest Pension House in fictitious employment seniority case

Prosecutors from Romania’s Directorate for Investigating Organized Crime and Terrorism, or DIICOT, raided the Bucharest Pension House and locations in several other counties on Wednesday, July 15, in a case involving fraud allegations.

Prosecutors suspect that fictitious employment seniority was entered into ANAF systems for roughly 5 years so that nearly 900 beneficiaries could retire much earlier or increase their pensions. Damages in the case exceed EUR 1.3 million.

In total, prosecutors conducted 30 searches in Bucharest and in the counties of Ilfov, Teleorman, Constanța, Giurgiu, Ialomița, Călărași, and Galați. According to DIICOT, the group from Bucharest allegedly operated since 2018 and allegedly entered tax declarations into ANAF’s computer systems, falsely showing that certain people had been employed and that social contributions had been paid for them. In reality, investigators claim, these people had never worked for the companies or associations used in the scheme.

Prosecutors say that members of the network used inactive associations, shell companies, and the identities of vulnerable people to create false employment documents. Those interested in obtaining employment seniority paid between RON 15,000 and RON 50,000 to members of the network.

Of the 860 beneficiaries, 170 later used the documents to obtain pension decisions or to have their pensions recalculated, obtaining higher pensions.

The damage caused to the budgets of the pension houses was estimated at around RON 7 million, but the amount continues to increase because the pensions are still being paid.

According to the DIICOT press release, the core of the group consisted of seven members, two of whom are public officials, and their activity was allegedly supported, during different periods, by another 13 suspects. According to initial information, a judicial expert and a former employee of the Territorial Labor Inspectorate (ITM) were involved. They allegedly identified companies and associations that could be used in the scheme, entered and verified tax declarations in ANAF systems, collected the money, and also provided consultancy in the field of labor law and pensions for people interested in obtaining fictitious employment seniority.

The targeted individuals are being investigated for forming an organized criminal group, computer forgery, fraud with particularly serious consequences, and using or allowing access to information that is not intended for public disclosure.

radu@romania-insider.com

(Photo source: DIICOT.ro) ...