Five Men Arrested for Using Groningen Earthquake Repair Subsidies to Buy Lamborghinis

Dutch authorities have arrested five real estate developers on suspicion of large-scale subsidy fraud involving money intended to repair and improve homes damaged by gas extraction earthquakes in Groningen.The men allegedly wrongfully received over €1 million in public funds and used part of it to purchase luxury cars, including two Lamborghinis and a Ferrari.

The suspects own multiple properties in Groningen. According to the Tax Authority's investigative service FIOD, they allegedly forged letters from the Groningen Mining Damage Institute (IMG) and used them to apply for subsidies through the Northern Netherlands Cooperation (SNN).

These subsidies are part of the government's earthquake compensation programs designed to help Groningen residents affected by decades of seismic activity caused by natural gas extraction. Homeowners with recognised earthquake damage exceeding €1,000 can apply through SNN for up to €4,000 to make their homes more sustainable, for example, by adding insulation, installing solar panels, or upgrading heating systems.

Investigators say the developers filed over 300 subsidy applications using the forged IMG documents, often claiming subsidies for dozens of properties at once, even though only a few addresses actually met the damage threshold. By submitting fraudulent applications, they allegedly received more than €1 million in subsidy money they were not entitled to.

The FIOD arrested the five suspects on Tuesday, November 18, 2025. The arrested individuals are four men from the municipality of Westerkwartier aged 26, 53, 54, and 54, and a 53-year-old man from Oud-Beijerland.

During searches of their homes and business premises, authorities seized substantial assets:

Six luxury vehicles:

Other seized items:

All five men are suspected of forgery and subsidy fraud. The criminal investigation remains ongoing.

The fraud case occurs against the backdrop of one of the Netherlands' most prolonged and contentious environmental disasters. More than 1,600 earthquakes have hit the Groningen region since the 1980s, damaging 85,000 buildings. The seismic activity is caused by ground settling following decades of natural gas extraction from Europe's largest gas field, which opened in 1963.

A parliamentary commission concluded in 2023 that the interests of Groningen residents were systematically ignored by both the government and oil companies, with making money remaining the dominant concern even as gas extraction began causing earthquakes.

Thousands of people and businesses are still waiting for compensation for property damage and mental health impacts. The government has promised approximately €22 billion over the next 30 years under the "Nij Begun" (New Beginning) program to address what officials call the "debt of honour" to Groningen residents.

Reports had already reached authorities suggesting that some real estate developers were misusing Groningen subsidy schemes through tactics including falsifying IMG documents, applying for subsidies for many addresses simultaneously, and using only a handful of legitimate damage cases to justify much larger claims across their property portfolios.

The case is particularly sensitive in Groningen, where residents have waited years, sometimes decades, for proper recognition and compensation for earthquake damage. Subsidies to make damaged homes more sustainable are meant to offer relief and long-term security to individual homeowners who have suffered through years of uncertainty.

The fraud case puts additional pressure on authorities to tighten verification procedures for subsidy applications and scrutinise the role of professional property owners in accessing funds originally designed for individual residents dealing with earthquake damage.

The criminal investigation continues as prosecutors build their case against the five suspects. Authorities are examining financial records, property ownership documents, and the trail of subsidy applications to determine the full extent of the alleged fraud.

The case may prompt reforms to subsidy application procedures, including enhanced verification of IMG damage assessments, stricter limits on the number of properties a single applicant can claim for, and increased oversight of applications submitted by real estate developers rather than individual homeowners.