Two businessmen from the Romanian city of Craiova received arrest warrants on Tuesday as they are charged of bringing a prejudice of some 300 billion ROL to the state budget. The case also targets another local businessman, Dan Stoica.

Prosecutors had opened a criminal inquiry on brothers Ion and Nicolae Mihailescu and three other people on Monday under charges of tax evasion, embezzlement and criminal association.

The five are accused of producing a prejudice of 300 billion ROL to the state budget in 2001-2002. Prosecutors say the indicted have formed a criminal group to launder the money obtained through illegal VAT reimbursements and unjustified spending.