Major Fraud Probe: Six Suspects Accused of €3.5M KfW Loan Scandal
A major investigation is underway in Germany, focusing on six suspects aged 40 to 64, accused of fraud involving KfW coronavirus loans. The probe, led by the Public Prosecutor's Office in Braunschweig, began in 2023 and involves allegations of circumventing loan limits and making false statements.
On March 27, 2025, the Lower Saxony State Criminal Office (LKA) conducted raids at twelve locations across Lower Saxony, Hamburg, and Saxony-Anhalt. They seized digital evidence and company documents, indicating a significant step forward in the investigation.
Two key suspects, a 40-year-old and a 56-year-old, are alleged to have obtained KfW quick loans totaling €3.5 million for five companies in the logistics sector. The younger suspect is also accused of securing loans for her own company, leading to a loss of €2.0 million. The investigation has revealed that the suspects allegedly delayed the insolvencies of two companies, sparking further economic crime investigations.
The ongoing probe has uncovered serious allegations of fraud and economic crime. The LKA continues to evaluate evidence and investigate the suspects' actions. As the case progresses, more details are expected to emerge, shedding light on this complex financial scandal.
