The website Reporter.lu said Oct. 17 that investigators suspected a criminal network in Bulgaria had duped a Caritas Luxembourg employee into transferring funds through a clairvoyant in whom she allegedly confided.
The employee reportedly began consulting the website of a psychic operating in neighboring Belgium but based in Spain.
Reporter.lu said the employee divulged information about her workplace that the fortune teller then allegedly shared with organized criminals.
“According to information from Reporter.lu, the investigation is now targeting criminals of Bulgarian origin, who allegedly abused the psychological fragility of the foundation’s financial director and took advantage of the organization’s weak governance to steal 61 million euros in five months,” the website said.
Reporter.lu said around 25 million euros was believed to be in China, 10 million in Hong Kong, and roughly 8 million in Lithuania.
Luxembourg’s public prosecutor’s office said in August that Caritas Luxembourg may have fallen victim to “fake president fraud,” in which a fraudster impersonates a senior figure within a company, demanding that employees arrange urgent international payments.
The public prosecutor’s office has not commented on the fortune teller report, but in an Oct. 9 update, it said it still favored the “fake president fraud” hypothesis.
“Since the initial complaint was lodged, investigators from the criminal investigation department, under the direction of the investigating judge, have been working closely with the Financial Intelligence Unit (CRF),” it said.
“The ongoing investigation has identified more than 8,200 transactions, carried out at very short intervals, to hundreds of accounts opened in a multitude of countries around the world, reinforcing the presumption that a criminal association or organization is involved in this fraud.”
“At this stage, some 15 requests for mutual assistance have been sent by the investigating judge to his foreign counterparts. The foreign authorities’ response is crucial to the outcome of the investigations.”
The public prosecutor’s office added that no new charges had been leveled and it was not known whether some of the misappropriated funds could be recovered.
The “Caritas affair,” which has shaken the small country bordering Belgium, France, and Germany, came to light in July, prompting anger among government officials and a national debate about oversight of charities receiving state funds.
Caritas Luxembourg, which was founded in 1932 and belongs to the Caritas network, filed a complaint July 16.
The public prosecutor’s office then requested the opening of a judicial investigation into suspected forgery, fraud, breach of trust, and money laundering, among other crimes.
On July 22, the office said that an individual had appeared for questioning and was arrested. The person was later released from custody.
At the end of July, the former chartered auditor Christian Billon was named head of a crisis committee charged with restoring the confidence of donors, the public, and the authorities in Caritas Luxembourg.
In August, it emerged that two banks approved tens of millions of euros in loans for the charity while the suspected fraud was occuring.
On Sept. 4, Luxembourg’s Prime Minister Luc Frieden denounced what he called “a horrible fraud” and said that Caritas Luxembourg would be replaced by a “new Caritas.”
On Sept. 11, Billon announced the creation of a new entity that will take over most of Caritas Luxembourg’s domestic activities. The non-profit Hellëf um Terrain (Help on the Ground) will begin work Oct. 1.
Days later, Caritas Luxembourg announced the closure of its overseas aid projects. But Luxembourg’s development minister Xavier Bettel has said efforts are underway to salvage some of the projects.
The Luxembourg Times reported that the global Caritas network will take on five of the projects, while Bettel’s ministry is considering funding 12 projects via local partners.
A special parliamentary committee on the Caritas Luxembourg scandal held its first meeting Oct. 23.
Pope Francis made a daylong visit to Luxembourg Sept. 26, during which he met with the prime minister and the head of state, Grand Duke Henri.
At the end of an encounter with the Catholic community in Luxembourg’s Notre-Dame Cathedral, the pope was presented with a gift of 176,000 euros (around $190,000), which he immediately returned, indicating it should be used to support the local poor and refugees.