€61 million gone and only small recoveries after a year of investigations

One year after the financial scandal surrounding Caritas Luxembourg came to light, the public prosecutor's office has taken stock of a case it calls complex and wide-ranging. At the center: over €61 million embezzled from the foundation between February and July 2024, allegedly by the former financial director.

Following the initial complaint, Luxembourg's judiciary launched a sweeping investigation. The foundation's offices and the director's foreign residence were searched, and a long list of financial and IT evidence was gathered. The former director now stands accused of forgery, fraud, breach of trust, money laundering, and computer-related crimes. She remains under judicial supervision.

Investigators followed thousands of transactions traced to 14 Spanish bank accounts, and through collaboration with police forces in France, Bulgaria, and the UK, several individuals were arrested and extradited to Luxembourg. These suspects had opened accounts under their own names but are believed to have acted as "strawmen" for a professional money laundering network.

Much of the stolen money has since disappeared, funneled through layered international transfers and invested in cryptocurrency, making it nearly impossible to trace. Authorities have managed to freeze only a small portion of the total, with repatriation of any funds will likely depend on the outcome of future trials.

Just last week, two of the intermediaries admitted guilt and accepted plea deals: each received three months in prison, 15 months suspended, and a €3,000 fine. Their phones were confiscated.
 
So far, the investigation has led to 40 international requests for legal assistance in 13 countries, 27 search and seizure warrants, 54 court orders to freeze assets.
 
The investigation continues under the direction of the examining magistrate, with more proceedings expected in the coming months.
 
Read also:
https://today.rtl.lu/news/luxembourg/a/2322360.html