“Once again, a big thank you to all the volunteers for their commitment!” In the photo accompanying a press release at the end of June, chairs in a circle bring together “facilitators.” Around a hundred of them joined Hëllef um Terrain, which was born out of the ruins of Caritas at a time when far fewer politicians wanted to lend a hand than those who criticise it today. One year on from this scandal, rebuilding is not going to be easy, even under a new roof, even in a new chapel. Unravelling how Caritas was robbed of €61m is no easier.
On Monday, the public prosecutor’s office retraced the events that have taken place since the complaint was lodged by the then director general on 16 July 2024. “The complaint was directed at the foundation’s financial director, who was suspected of having carried out, between 9 February 2024 and the day the complaint was lodged, fraudulent transfers, among others, to the detriment of the foundation, amounting to approximately €61,208,830,” says the press release. “The investigating judge charged the person with forgery, fraud, breach of trust, money laundering, domestic theft and computer fraud. The person was placed under judicial supervision following their first appearance.”
From Spain to China
One year on, the judicial investigation is shedding light on a sophisticated international criminal network, with ramifications stretching from Spain to China, as revealed by the media outlet Reporter.
The first arrests were made in January 2025, targeting individuals in Spain, Luxembourg and Bulgaria. Two Bulgarians, Rafaelo I. and Ivan T., were sentenced to 18 months in prison, 15 of which were suspended, a fine of €3,000 and the confiscation of their mobile phones. The men set up shell companies in Spain, mainly in Granada and Malaga, and opened bank accounts with Banco Bilbao Vizcaya Argentaria (BBVA). The embezzled funds passed through these accounts before being transferred to other accounts around the world. They will be released from prison next month, Reporter said this Monday morning.
Investigators have identified more than 8,200 suspicious transactions, made at very short notice, to hundreds of accounts opened in various countries, strengthening the presumption of the involvement of a criminal organisation. Requests for mutual legal assistance were sent to 13 foreign states, with seizures of blocked funds in Luxembourg and abroad.
Mules and cryptoselv
“More than a hundred messages were exchanged via the Siena (Secure information exchange network application) platform, CCPD (Centre for Police and Customs Cooperation) and Interpol, some 30 European investigation decisions and international letters rogatory were issued to the foreign authorities of 13 states, 27 search and seizure orders were issued and 54 orders for the seizure of funds blocked in Luxembourg and abroad were issued,” says the public prosecutor’s office.
At a time when the subject of opening bank accounts comes up every other day, criminal networks have recruited “mules,” capable of registering companies and opening accounts. Small rivers that flow from account to account, from crypto wallet to crypto wallet, have eluded or are still eluding investigators. Seven other Bulgarians are still in prison in Luxembourg but are less keen to “repent” than the two others.
The political part ended, after months of consultations, with controversy surrounding the proposals of the special Caritas commission. These proposals were aimed at strengthening financial transparency, professionalising the social sector, crisis management and revising the legislative framework for NGOs to prevent future fraud. However, there are a number of problems with these measures, including the financial pressure they could put on small NGOs and the complexity of implementing them, especially in the event of a crisis. In addition, some important points, such as the legal protection of employees, were excluded from the final recommendations, which caused tensions between the political parties, slowing down the full adoption of the proposed reforms.
This article was originally published in French.
