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Struggling stewardess exposed euro coin fraud ring

2011-04-01 07:30:58

Thu Mar 31, 12:21 pm ET

FRANKFURT (Reuters) An airline stewardess struggling to lift her bag at a

German airport led to the discovery of a 6-million euro ($8.4 million) coin

fraud.

The customs officer who stopped the stewardess in early 2010 found thousands of

one and two euro coins in her bag, Bild newspaper reported in its Thursday

edition.

The incident sparked an investigation that has uncovered a forgery ring

stretching to China and potentially implicating employees of German airline

Lufthansa, the paper said.

The Frankfurt prosecutors' office said on Thursday it carried out dawn raids on

offices and residences and arrested six people, four of whom are from China.

It suspects them of having smuggled coins that had been taken out of

circulation or bits of those coins into Germany from China, where they had been

sent as scrap metal.

The suspects then put the coins back together and exchanged them for a total of

6 million euros at the Bundesbank from 2007 to 2010, the prosecutors said.

Airline cabin crew do not have a weight limit on their baggage, prosecutors

highlighted in a statement.

There was no suspicion of any wrongdoing on the part of Bundesbank employees,

the prosecutors' office added.

The Bundesbank said in a statement it was aware of the investigation into the

use of scrapped coins. It also said that no Bundesbank employees were subject

to the investigation.

A Lufthansa spokesman on Thursday said it was aware that individual employees

were under investigation, but said the group could not comment on the

investigation.

Old euro coins are taken out of circulation by removing the inner part of the

coin from an outer ring and thus effectively turning them into scrap metal.

The investigators recovered around 3 tonnes of coin pieces as well as a machine

for putting them back together, prosecutors said in the statement.

The Bundesbank is the only institute in Europe that exchanges damaged euro

coins for free, replacing them with new ones of the same value.

(Reporting by Victoria Bryan, Alexander Huebner and Sakari Suoninen, editing by

Paul Casciato)

($1=.7110 euros)