France Probes Millions in Virus Unemployment Fraud

A person walks on Trocadero square as a lockdown is imposed to slow the rate of the coronavirus disease (COVID-19) in Paris, France, April 26, 2020. REUTERS/Gonzalo Fuentes
A person walks on Trocadero square as a lockdown is imposed to slow the rate of the coronavirus disease (COVID-19) in Paris, France, April 26, 2020. REUTERS/Gonzalo Fuentes
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France Probes Millions in Virus Unemployment Fraud

A person walks on Trocadero square as a lockdown is imposed to slow the rate of the coronavirus disease (COVID-19) in Paris, France, April 26, 2020. REUTERS/Gonzalo Fuentes
A person walks on Trocadero square as a lockdown is imposed to slow the rate of the coronavirus disease (COVID-19) in Paris, France, April 26, 2020. REUTERS/Gonzalo Fuentes

Organized crime groups sought to defraud the French state of millions of euros meant for workers left jobless by the virus lockdown, prosecutors said Friday.

France had an exceptionally generous temporary unemployment scheme that subsidized workers’ salaries while restaurants, schools and businesses across the economy shut down for two months or more to contain the virus.

Criminals took advantage of it, successfully obtaining more than 2 million euros from the state that did not go to workers, the Paris prosecutor’s office said in a statement. Authorities so far have been able to suspend another 6 million euros in scheduled payments and recover 421,000 euros already spent on nonexistent workers, it said.

The Paris prosecutor's office is now leading a nationwide investigation into what it calls “massive fraud” and money laundering by organized crime groups that it did not identify. It is notably investigating potential international connections to the fraud.

Prosecutors in the southern city of Toulouse and the central French city of Limoges initially started investigating an unusually large number of similar applications from companies for money from the temporary unemployment fund. Investigators found that the applicants were using registration numbers of companies that had not applied for the state salary subsidies, and funneled the money to hundreds of French bank accounts instead of to workers.

France spent billions of euros on the temporary unemployment program, which was credited with keeping people employed and allowing businesses to stay afloat during lockdown. The economy has started picking up as France gradually reopens, but tourism is muted and many companies are struggling to revive, and the country is still facing its worst recession in decades.



Grossi Urges Iran to Reach an Understanding with Trump

21 January 2025, Switzerland, Davos: Director General of the International Atomic Energy Agency (IAEA) Rafael Grossi speaks at "Road to Tripling Nuclear Capacity session" during the World Economic Forum Annual Meeting. (Valeriano Di Domenico/World Economic Forum/dpa)
21 January 2025, Switzerland, Davos: Director General of the International Atomic Energy Agency (IAEA) Rafael Grossi speaks at "Road to Tripling Nuclear Capacity session" during the World Economic Forum Annual Meeting. (Valeriano Di Domenico/World Economic Forum/dpa)
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Grossi Urges Iran to Reach an Understanding with Trump

21 January 2025, Switzerland, Davos: Director General of the International Atomic Energy Agency (IAEA) Rafael Grossi speaks at "Road to Tripling Nuclear Capacity session" during the World Economic Forum Annual Meeting. (Valeriano Di Domenico/World Economic Forum/dpa)
21 January 2025, Switzerland, Davos: Director General of the International Atomic Energy Agency (IAEA) Rafael Grossi speaks at "Road to Tripling Nuclear Capacity session" during the World Economic Forum Annual Meeting. (Valeriano Di Domenico/World Economic Forum/dpa)

The head of the International Atomic Energy Agency (IAEA) urged on Tuesday Iran to reach an understanding over its atomic activity with the administration of US President Donald Trump in order to avoid being dragged into another military conflict in the Middle East.

UN nuclear watchdog chief Rafael Grossi said that Iran has accelerated its enrichment of uranium to up to 60% purity, close to the roughly 90% level that is weapons grade.

He spoke about Trump’s decision six-and-a-half years ago to quit the 2015 nuclear deal that gave Tehran sanctions relief in exchange for strict limits on its nuclear activities.

“There was an agreement that existed before President Trump decided that was not the path he wanted to follow,” Grossi said at the World Economic Forum in Davos. “Now we need to come to terms with how we deal with this, excluding of course, a war. We don’t want more wars.”

He confirmed Iran continues to produce large quantities of highly-enriched uranium. In December, Tehran’s engineers increased capacity sevenfold, to about 34 kilograms a month in response to a diplomatic censure in November.

Iran ready for more talks

Meanwhile, Iran threw the ball into the West’s court, declaring its readiness to revive negotiations on its advanced nuclear program.

Deputy Foreign Minister Kazem Gharibabadi said on Tuesday his country wants to pursue discussions with European nations (France, Germany and the UK) after both sides held a third round of talks in Geneva last week.

“We agreed to continue discussions. We will determine the date and time for them through joint consultations,” he said.

Both Iran and the so-called E3 countries had described previous talks as “frank and constructive.” Iran said the third round, which started last September in New York, aimed at exploring how Tehran can return to the negotiations table.

Gharibabadi said: “The most logical path forward is to initiate talks on lifting sanctions.”

Speaking to reporters, he reiterated Iran's willingness to engage in diplomacy. The country, as always, is ready to initiate and resume negotiations aimed at lifting sanctions, he said.

“We have consistently been prepared, and if the other parties demonstrate the same readiness, we are confident that talks can proceed and yield positive results,” he said, according to the state-owned Iranian Students' News Agency (ISNA).

He underscored the peaceful nature of Iran’s nuclear program, adding that “there are proper opportunities for dialogue and understanding” and noting that “unilateral sanctions were ineffective.”

Both US and Iranian officials have sent mixed signals about whether they were headed to a confrontation or explore diplomatic solutions now that Trump has assumed office.

Maximum pressure

Tehran fears that Trump will return to his previous “maximum pressure” policy that he had applied on Iran during his first term in office. It also fears Britain, France and Germany could trigger the so-called “snapback mechanism,” part of the 2015 deal, which allows signatories to reimpose UN sanctions on Iran in cases of the “significant non-performance” of commitments.

The option to trigger the mechanism expires in October this year, adding urgency to the ongoing diplomatic efforts.

Last Friday, reports said Iranian officials had informed their European counterparts that Tehran would withdraw from the Nuclear Non-Proliferation Treaty if the snapback mechanism is implemented.

Last week, Bloomberg reported that Trump could blow a $30 billion hole in Iran’s economy should he return reimpose his maximum pressure policy.

It said the president’s key advisers are looking at a big sanctions package that hits major players in Iran’s oil industry, which could come as early as February.

On Sunday, Trump’s national security adviser, Mike Waltz, said in an interview that the administration will make key decisions concerning Iran over the next month.

He said the Israeli strikes against Hamas and Hezbollah, in addition to the fall of Bashar al-Assad's regime in Syria, have all prepared the circumstances for the US to soon take strategic decisions.