Dutch man arrested for €8 million fraud in COVID healthcare subsidies
The Enforcement Service of the Dutch Labour Inspectorate has arrested a 49-year-old man suspected of committing fraud with corona subsidies, money laundering, and forgery, NOS reports. He is alleged to have defrauded eight million euros from the Corona Jobs in Healthcare (COZO) subsidy scheme.
The man allegedly applied for millions in COZO subsidies for 32 healthcare companies that were shell businesses, according to the Labour Inspectorate. Through these companies, he is also said to have siphoned off the money. The inspectorate suspects that none of the companies used the received subsidies to hire temporary support staff.
Investigators believe the man did not act alone but formed a criminal network with others. The Labour Inspectorate is continuing to investigate the network and has not ruled out further arrests.
The COZO scheme was intended to help healthcare providers temporarily hire extra staff to reduce pressure on the healthcare system during the coronavirus pandemic.
During searches, authorities seized the suspect’s administration records, data carriers, a vehicle, and cash. He remains in custody.
This is not the first time fraud has been detected involving corona healthcare jobs. In recent years, several people have been arrested for allegedly committing similar fraud.
In early 2022, then-Minister Helder for Long-Term Care temporarily suspended the subsidy scheme due to suspicions of fraud. A few months later, the scheme was resumed. The COZO program has now ended.
