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.

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"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.

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https://www.reuters.com/sustainability/german-prosecutors-probe-16-suspects-alleged-metals-fraud-2026-01-23/