Two Bulgarian men received suspended jail sentences for laundering 61 million euros from Caritas Luxembourg. The men opened bank accounts in Spain and were deemed 'passive participants' in the money-laundering scheme. The fraud likely involved a 'fake president' scheme, where fraudsters impersonated a senior figure to demand urgent payments. The court reached a plea bargain with the men, resulting in a lighter sentence due to their cooperation. Investigators are still searching for the masterminds behind the fraud and other 'money mules'.
5 months ago
Two Bulgarian men have been convicted for their role as "money mules" in the €61 million fraud against Caritas Luxembourg 1. On July 15, a Luxembourg court sentenced each man to 18 months in prison, with 15 months suspended, and a €3,000 fine 1. This outcome resulted from a plea bargain, acknowledging their "passive participation" in the money laundering scheme by opening bank accounts in Spain for the organizers 1. Seven other individuals accused of being "money mules" are currently facing prosecution, with the possibility of similar plea deals 1.
The former chief financial officer (CFO) of Caritas Luxembourg also faces charges, though she maintains her innocence, asserting she was a victim of the fraud 1. Investigators are still actively pursuing the masterminds behind the scheme and are uncertain if the stolen funds can be recovered 1. In January 2025, eight suspects were arrested in a joint police operation across Bulgaria, France, and Britain, with a ninth Bulgarian individual detained later that month 1. The investigation remains ongoing, including a recent search of the offices of Grant Thornton, Caritas Luxembourg's auditing firm 1.
The fraud, which occurred between February and July 2024, involved the transfer of €61 million from Caritas Luxembourg to foreign bank accounts worldwide 1. The method employed was "fake president fraud," where an imposter convinces an employee to make urgent payments to accounts they control 1. Transfers were made in installments of less than €500,000 1. Reports suggest the transfers were disguised as payments to a legitimate Turkey-based charity, requiring electronic signatures from the financial director and two other management team members 1.
A significant aspect of the investigation involves a theory that the former CFO may have been duped by a Bulgarian crime organization after confiding in a fortune teller 1. This psychic, operating from Spain, allegedly shared information about the CFO's workplace, which criminals then exploited 1. Investigators have identified over 8,200 transactions made in "very short intervals to a multitude of countries," with an estimated €25 million believed to be in China, €10 million in Hong Kong, and €8 million in Lithuania 1.
The fraud scandal profoundly impacted Caritas Luxembourg, leading to a significant organizational crisis 1. In July 2024, Caritas Luxembourg filed a complaint, prompting a judicial investigation into suspected forgery, fraud, breach of trust, and money laundering 1. A special parliamentary inquiry into the scandal concluded in July 2025, adopting a report with 12 recommendations aimed at improving employee supervision and professionalizing the charitable sector 1.
In response to the crisis, Caritas Luxembourg underwent a major restructuring 1. In September 2024, Luxembourg's Prime Minister Luc Frieden announced that Caritas Luxembourg would be replaced by a "new Caritas" 1. A new entity, Hellëf um Terrain (Help on the Ground), began operating in October 2024, taking over most of Caritas Luxembourg’s domestic activities 1. Consequently, Caritas Luxembourg announced the closure of its overseas aid projects 1. However, efforts are underway to salvage some of these projects, with the Fondation Partage Luxembourg, a Catholic organization, temporarily assuming the overseas aid work 1. It also emerged that two banks approved tens of millions of euros in loans for the charity while the suspected fraud was ongoing 1.
The Church's stance on justice, charity, and financial integrity?
The Catholic Church teaches that justice, charity, and financial integrity are interconnected virtues essential for individual well-being and the common good. These principles are rooted in the dignity of the human person and God's plan for humanity .
Justice is defined as the moral virtue that involves the constant and firm will to give God and neighbor what is due to them . It is considered the quintessential social virtue, aiming to regulate relationships between people equitably and ensure that everyone is treated according to their inherent dignity .
Key aspects of justice in Catholic teaching include:
Charity is the theological virtue by which individuals love God above all things for His own sake and their neighbor as themselves for the love of God . It is considered the greatest of the virtues and the "bond of perfection" that gives life, inspiration, and order to all other virtues .
Key aspects of charity in Catholic teaching include:
Financial integrity in Catholic teaching emphasizes ethical conduct in economic matters, ensuring that financial activities respect human dignity and promote the common good. It is closely tied to the virtues of justice and temperance .
Key aspects of financial integrity include:
In summary, the Church's stance is that justice provides the framework for equitable relationships, charity animates and perfects these relationships with love, and financial integrity ensures that economic activities uphold human dignity and serve the common good, all working together to build a society rooted in God's truth and love .