Four suspects arrested in The Hague for embezzling millions in Covid support

The Labour Inspectorate arrested four people from The Hague on Wednesday on suspicion that they may have defrauded 8 million euros in COVID-19 support. During the pandemic, businesses facing financial hardship were eligible for government subsidies to help cover employee wages.

Authorities say several entrepreneurs misused the scheme. During Wednesday’s arrests, Labour Inspectorate investigators conducted searches at homes and company premises both in the Netherlands and abroad. Cash, luxury items, and vehicles were discovered, and bank accounts as well as property have been frozen or seized.

The suspects are linked to two employment agencies in The Hague that are believed to have fraudulently obtained COVID-19 support payments. The companies claimed financial losses due to reduced turnover, even though their revenue had actually risen sharply, and the applicants were aware of this. Investigators say the funds were then moved on, including transfers abroad, leading to additional suspicions of money laundering.

One of the premises searched was the office of Euro Start Uitzendbureau on Radarstraat in Den Haag. The investigation involves four men from the same city. During the raid on Radarstraat, officers were supported by the Special Assistance Unit (BBT) of the FIOD. Alongside frozen bank accounts, authorities also seized property and a car on the spot.

The case began after a financial institution reported a suspicious transaction to the Financial Intelligence Unit (FIU). The investigation now covers suspected subsidy fraud, forgery, and money laundering.

At the centre of the case is the alleged misuse of the NOW scheme (Emergency Bridging Measure for Employment), which was introduced to help safeguard jobs during the COVID-19 pandemic. The operation is being conducted under the supervision of the Functional Public Prosecution Service.

The action was carried out as a joint operation by the Investigation Service of the Netherlands Labour Authority (NLA), the FIOD, and the Inspectorate SZW’s criminal investigation unit, Accountant.nl reported.