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Home > Finance > German prosecutors probe 16 suspects in alleged metals fraud

German prosecutors probe 16 suspects in alleged metals fraud

Published by Global Banking and Finance Review

Posted on January 23, 2026

2 min read

Last updated: January 23, 2026

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Quick Summary

German prosecutors are probing 16 suspects in a $540M metals fraud case at Heraeus, following a whistleblower's report.

German Authorities Investigate 16 Individuals in Metals Fraud Case

Overview of the Investigation

FRANKFURT, Jan 23 (Reuters) - Prosecutors in Germany are investigating 16 suspects for possible embezzlement and fraud at Heraeus, the German metal trading and recycling group that has reserved $540 million to cover risks for "irregularities" exposed by a whistleblower.

Details of the Allegations

Prosecutors in Frankfurt said on Friday that they had been investigating since June suspicions that materials delivered by customers to Heraeus for processing were unlawfully taken in a period spanning 2015 to 2025.

Company Response and Compliance Measures

"There are grounds for suspicion that unlawful withdrawals may have been made from delivered customer material," prosecutors said in an emailed statement.

The prosecutors' investigation was first reported by the Financial Times.

Heraeus disclosed last year in its 2024 annual report a provision of 457.7 million euros ($537.29 million), following an internal whistleblower who exposed irregularities in the handling of precious metals "that were to the detriment of certain customers" at a company recycling site in Hanau, Germany.

A Heraeus spokesperson said in a statement on Friday that it was cooperating with authorities and that affected customers had been compensated.

"We have taken the necessary measures and precautions to prevent a recurrence and strengthen our compliance system," the spokesperson said.

($1 = 0.8519 euros)

(Reporting by Tom Sims, editing by Linda Pasquini)

Key Takeaways

•German prosecutors are investigating 16 individuals for metals fraud.
•Heraeus has reserved $540 million for potential risks.
•The investigation began after a whistleblower's report.
•Alleged embezzlement occurred between 2015 and 2025.
•Heraeus is cooperating and has compensated affected customers.

Frequently Asked Questions about German prosecutors probe 16 suspects in alleged metals fraud

1What is embezzlement?

Embezzlement is the act of wrongfully taking or misappropriating funds placed in one's trust or belonging to one's employer.

2What is fraud?

Fraud is a wrongful or criminal deception intended to result in financial or personal gain.

3What is a whistleblower?

A whistleblower is an individual who reports unethical or illegal activities within an organization, often to protect the public interest.

4What are compliance measures?

Compliance measures are policies and procedures implemented by organizations to ensure adherence to laws, regulations, and ethical standards.

5What is a provision in financial terms?

A provision is an amount set aside in an organization's accounts to cover a future liability or loss.

Overview of the Investigation

Details of the Allegations

Company Response and Compliance Measures

"There are grounds for suspicion that unlawful withdrawals may have been made from delivered customer material," prosecutors said in an emailed statement.

The prosecutors' investigation was first reported by the Financial Times.

A Heraeus spokesperson said in a statement on Friday that it was cooperating with authorities and that affected customers had been compensated.

"We have taken the necessary measures and precautions to prevent a recurrence and strengthen our compliance system," the spokesperson said.

($1 = 0.8519 euros)

(Reporting by Tom Sims, editing by Linda Pasquini)

Key Takeaways

•German prosecutors are investigating 16 individuals for metals fraud.

•Heraeus has reserved $540 million for potential risks.

•The investigation began after a whistleblower's report.

•Alleged embezzlement occurred between 2015 and 2025.

•Heraeus is cooperating and has compensated affected customers.

Frequently Asked Questions

1What is embezzlement?

Embezzlement is the act of wrongfully taking or misappropriating funds placed in one's trust or belonging to one's employer.

2What is fraud?

Fraud is a wrongful or criminal deception intended to result in financial or personal gain.

3What is a whistleblower?

A whistleblower is an individual who reports unethical or illegal activities within an organization, often to protect the public interest.

4What are compliance measures?

Compliance measures are policies and procedures implemented by organizations to ensure adherence to laws, regulations, and ethical standards.

5What is a provision in financial terms?

A provision is an amount set aside in an organization's accounts to cover a future liability or loss.