On 19 May, the Netherlands Labour Authority's Investigation Service arrested 5 people suspected of laundering around 2 million euros of social care funds. The fraud began in 2023.
In addition to the arrests, searches were conducted at the suspects' homes, a holiday home, 2 business premises and 2 storage sites. Luxury goods such as expensive branded watches and clothes were seized during the searches. Cash, real estate and 7 expensive cars were also seized.
On 2 June, the Pre-trial Chamber of the Rotterdam District Court extended the remand of 4 suspects by 90 days.
The suspects made use of 4 foundations that had to end their care provision in 2024. However, the money-laundering activities did not stop. The suspects then started using frontmen. Throughout the period, a total of about 5 million euros in healthcare funds was credited, much of which was presumably withdrawn by the suspects and not spent on providing care.
Large amounts withdrawn
The investigation by the Care Fraud Investigation Department of the Criminal Investigation Service revealed considerable overlap between the cash flows of the 4 foundations. On paper, the foundations were separate companies.
Constructs
In reality, the foundations were driven as a construct by a group of people with social contact between them. 800.000 euros was transferred from the foundations to a sole proprietorship owned by one of the suspects and a further 800.000 euros went to a 'temporary employment agency'. This was on the pretence that staff were hired from these companies. However, both companies employed little to no staff. It is suspected that care funds were laundered through these 2 companies, among others.
Care funds were also received in the bank accounts of the frontmen that were not spent (in full) on providing care. Over 500.000 euros was transferred from these bank accounts to foreign bank accounts of the suspects.
Frontmen
A frontman is someone who owns or holds a vehicle, business, bank account or similar in their name with the aim of keeping the real owner or holder out of reach of the (judicial) authorities. This person allows himself to be used or abused for criminal purposes.
Social care fraud
The investigation is led by the Public Prosecution Service's National Public Prosecutor's Office for Serious Fraud, Environmental Crime and Asset Confiscation. The Criminal Investigation Service specialises in tackling organised and large-scale care fraud.
Social care funds are meant for people who need them, which is why the Criminal Investigation Service investigates criminals who misuse the social care system on a professional, structural or organised basis. This covers aspects such as expenses fraud and subsidy fraud. Confiscating criminal assets is one of the objectives through which the service contributes to a sound and ethical social care sector.