Lithuanian prosecutors launch pre-trial investigation into suspected accounting fraud at Žalimas-led institution

Lithuania’s Prosecutor General’s Office has launched a pre-trial investigation into allegations of fraudulent financial reporting at the Law and Democracy Centre, a public institution formerly headed by European Parliament member Dainius Žalimas, state broadcaster LRT and the Baltic News Service (BNS) report.

The probe follows formal requests from fellow MEP Petras Gražulis and Lithuanian parliament member Remigijus Žemaitaitis, who raised concerns over the potential misuse of state and EU funds between 2021 and 2025. Prosecutors determined that the claims—including possible violations of accounting regulations—could only be examined through a full pre-trial investigation.

The case has been assigned to the Financial Crime Investigation Service under the Ministry of the Interior, with oversight from the Prosecutor General’s Office Criminal Prosecution Department. Investigators will examine whether the centre, now defunct, engaged in the “fraudulent preparation and/or organisation of financial accounting” under Article 222(1) of Lithuania’s Criminal Code.

The Law and Democracy Centre, a non-governmental organisation, ceased operations earlier this year. The investigation comes amid broader scrutiny of public funding allocations, though no charges have yet been filed.