Finance
German prosecutors probe 16 suspects in alleged metals fraud
Published by Global Banking & Finance Review®
Posted on January 23, 2026
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 23, 2026
2 min readLast updated: January 23, 2026
German prosecutors are probing 16 suspects in a $540M metals fraud case at Heraeus, following a whistleblower's report.
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.
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.
"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)
Embezzlement is the act of wrongfully taking or misappropriating funds placed in one's trust or belonging to one's employer.
Fraud is a wrongful or criminal deception intended to result in financial or personal gain.
A whistleblower is an individual who reports unethical or illegal activities within an organization, often to protect the public interest.
Compliance measures are policies and procedures implemented by organizations to ensure adherence to laws, regulations, and ethical standards.
A provision is an amount set aside in an organization's accounts to cover a future liability or loss.
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