GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
German bank board member to leave in wake of brothel loan investigation - Finance news and analysis from Global Banking & Finance Review
Finance

German bank board member to leave in wake of brothel loan investigation

Published by Global Banking & Finance Review

Posted on October 6, 2026

1 min read

· Last updated: October 6, 2026

Add as preferred source on Google

Volksbank Koeln Bonn Board Member Steps Down After Brothel Loan Investigation

Details Surrounding the Board Member's Departure

By Tom Sims

Background of the Investigation

FRANKFURT, Oct 6 (Reuters) - A board member of the German lender Volksbank Koeln Bonn will leave the bank, though an investigation over his role in financing of one of Europe's largest brothels found no wrongdoing, the bank said on Tuesday.

Loan to Cologne's Pascha Brothel

Over the summer the Volksbank had placed the board member, Juergen Neutgens, on leave and commissioned a law firm to investigate a pandemic-era loan to finance Cologne's Pascha brothel.

Findings of the Investigation

The bank said on Tuesday that there was "no evidence of financial irregularities or misconduct in the lending transactions and business relationships" it examined.

Impact on Trust and Cooperation

"However ... the necessary basis for a relationship of trust and impartial cooperation can no longer be maintained going forward," the bank added.

Response from Juergen Neutgens

Neutgens has previously denied any wrongdoing through a lawyer. The lawyer didn't immediately respond to a request for comment on the departure on Tuesday.

(Reporting by Tom Sims, editing by Friederike Heine)

Key Takeaways

  • Neutgens placed on leave during internal probe and later cleared of financial wrongdoing, but trust eroded, prompting departure
  • Credit in question was a €5 million loan in 2021 to fund the purchase of Cologne’s Pascha brothel by a Chinese investor
  • Broader investigations by Cologne prosecutors and regulator BaFin are ongoing, though bank itself is not targeted

Frequently Asked Questions

Why is the Volksbank Koeln Bonn board member leaving?
The board member is leaving because the bank felt trust and impartial cooperation could no longer be maintained, despite no evidence of misconduct.
Who is the board member involved in the investigation?
The board member is Juergen Neutgens, who was placed on leave during the investigation.
Was any wrongdoing found in the brothel loan investigation?
No evidence of financial irregularities or misconduct was found in the investigation of the loan to Pascha brothel.
What loan was under investigation at Volksbank Koeln Bonn?
The investigation focused on a pandemic-era loan granted to Cologne's Pascha, one of Europe's largest brothels.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category