KfW Loan Fraud Probe: Six Suspects Raided in Multi-Million Euro Case
The Lower Saxony State Criminal Office is probing several suspects for defrauding KfW coronavirus loans and delaying insolvency proceedings. Two companies' insolvencies are allegedly involved, sparking further economic crime investigations.
Twelve locations across Lower Saxony, Hamburg, and Saxony-Anhalt were searched, yielding digital evidence and company documents. The ongoing evaluation and investigations focus on six suspects aged 40 to 64.
Two main suspects, a 40-year-old and a 56-year-old, allegedly secured KfW quick loans totaling €3.5 million for five logistics companies. They bypassed loan limits by applying through multiple firms, using false statements. Funds were diverted for personal gain, causing a €2 million loss for the main suspect's company.
The investigation, led by the Public Prosecutor's Office in Braunschweig, involves employees from Robust Plastics GmbH and HT Electronic Systems GmbH, both part of the Höhrhan group. The suspected fraudulent use of KfW loans and delayed insolvency proceedings could result in significant penalties if proven.
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