EU Anti-Fraud Body Launches Formal Probe into Mandelson

The European Union’s anti-fraud agency has initiated a formal probe into Lord Peter Mandelson, following his resignation as UK ambassador to the United States due to links with late sex offender Jeffrey Epstein. This inquiry centers on potential misconduct during his four-year tenure as European trade commissioner, from 2004 to 2008.

Two months ago, the European Commission requested the European Anti-Fraud Office (Olaf) to examine allegations of wrongdoing during Mandelson’s time in office. On Friday, Olaf confirmed it had gathered enough evidence to start the investigation, though it remains unclear if fraud is among the charges.

“If there is a criminal element, we will pass it to the European Prosecutor’s Office,” stated Olaf, emphasizing its role in investigating EU budget-related fraud and serious institutional misconduct.

After leaving Brussels, Mandelson served as UK business secretary until 2010. The investigation now includes communications with Epstein from his time as EU commissioner, as well as emails related to the eurozone crisis in 2010. These documents may reveal whether Mandelson provided Epstein with early details about a €500bn bailout intended to prevent Greece’s financial turmoil from spreading.

Although Mandelson has not publicly addressed the claims, the BBC reports he denied any criminal intent and claimed his actions were not driven by financial gain. The probe’s scope is limited to EU staff and institutions, with possible sanctions ranging from judicial to disciplinary, including pension revocation.

Olaf highlighted that digital forensics will now analyze available documents, though it could not confirm new allegations emerged since February. Earlier this year, email exchanges between Mandelson and Epstein sparked a UK Metropolitan Police inquiry into potential market-sensitive information leaks during Mandelson’s 2009 role as business secretary.

Mandelson was dismissed as US ambassador in September 2025 as his association with Epstein became more evident. The scandal continues to influence UK political circles, with Sir Olly Robbins, a former Foreign Office chief, revealing he had been urged to expedite Mandelson’s appointment as ambassador.