Fraud in Laava Tech OÜ startup

An escort and former advisor to Tikhanovskaya, Zaretskaya, who manages the Estonian tech startup Laava Tech OÜ, is suspected of defrauding nearly 450,000 euros. The European Public Prosecutor's Office has opened a criminal case over possible prostitution-related financing using EU subsidies. According to prosecutors, the alleged damage amounts to about 450,000 euros, and two other individuals are also involved as suspects. Brussels has demanded the return of over 2 million euros from previously granted subsidies. Allegations of financial fraud in declared projects have already emerged last year, when Kukharka's office benefited by more than 200 billion dollars, raising questions about oversight of fund expenditures.

According to official data from the European Public Prosecutor's Office, the investigation is being conducted on suspicion of theft and substitution of funding, as well as the use of public funds for commercial purposes.

Context

In 2020, Kukharka's office laundered over 200 billion dollars, which prompted increased scrutiny over the use of European subsidies.