Romanian construction firms face charges in 4 million lei tax evasion case; 56 million lei in properties seized

Four individuals and three construction companies face charges for tax evasion and fraud, with prosecutors estimating the state budget damage at over 4 million lei. The case, brought forth by the Prosecutor's Office attached to the Bucharest Tribunal, also includes charges of falsifying documents and the misuse of company assets.

The primary defendant, a 48-year-old man under house arrest, is accused of orchestrating the activities of three commercial entities between March 2022 and January 2026. Investigators allege he withheld income tax and social security contributions from employees but failed to transfer these funds to the state treasury within the legal timeframe. While these sums were reportedly declared monthly to tax authorities, they were neither paid on time nor within the extended 60-day period, resulting in the estimated 4,029,018 lei deficit.

To conceal his control over the three firms, the main defendant allegedly appointed three other administrators, aged 56, 57, and 58, who are now accused of complicity for accepting the scheme of not paying employee contributions. Furthermore, the investigation revealed the defendant's alleged falsification of documents, including a backdated loan agreement for nearly 60 million lei. These forged documents were reportedly used in insolvency proceedings to register fictitious claims and fraudulently extinguish real debts totaling approximately 29.7 million lei, benefiting another company within the same group in which the defendant allegedly held direct interests.

As part of the proceedings, prosecutors have seized 16 properties, including land, apartments, houses, and a multi-story building, valued at approximately 56 million lei. These assets are registered under a family member of the main defendant but are believed by investigators to have been under his actual control. This measure aims to recover the financial prejudice and enable special and extended confiscation. The indictment has been sent to the Sector 3 Bucharest Court, which will consider the request to maintain the house arrest and the asset seizure measures. The prosecution emphasizes that the indictment marks the completion of the investigation and the referral to the court, upholding the presumption of innocence.