Hülya Iri and Daughter Face Criminal Probe Over Alleged Misuse of €1.2m in Integration Funds
Hannover prosecutors have opened an investigation into Hülya Iri on suspicion of breach of trust and subsidy fraud after her Kronsberg integration association, which received more than €1.2m, went insolvent.
Investigation opened by Hanover public prosecutor
The Hanover public prosecutor’s office announced on Friday, April 17, 2026, that criminal investigations have been launched against long-serving SPD politician Hülya Iri and her daughter, Esma B., on suspicion of breach of trust and subsidy fraud. Authorities say the probe centers on an integration association founded in 2018 in the Kronsberg district of Hannover that later declared insolvency at the end of March 2026. Prosecutors are examining whether funds intended for integration work were used improperly.
The probe follows a formal criminal complaint by the Federal Office for Migration and Refugees (BAMF) and a series of anonymous tips received by the prosecutor’s office over recent years. Officials emphasized the inquiry is ongoing and that suspects are being investigated on suspicion, not yet convicted of wrongdoing.
Allegations tied to AMIF funds and a BAMF complaint
Central to the inquiry is a BAMF complaint filed in mid-March 2026 alleging the purpose-bound misuse of €740,000 in funding from the Asylum, Migration and Integration Fund (AMIF). Investigators say those AMIF resources were earmarked for integration projects but may have been diverted. Prosecutors have flagged transactions and expenditures that they believe require closer forensic scrutiny to determine whether they complied with grant conditions.
Legal sources indicate the BAMF complaint provided clearer documentation than earlier anonymous reports, prompting the public prosecutor to move from preliminary review to a full investigation. Authorities are now tracing the flow of AMIF and other public funds through the association’s accounting records.
Financial history and the Kronsberg association’s insolvency
The association, established by Iri and relatives in response to rising tensions with youth groups in the newly developed Kronsberg neighborhood, received funding from federal, state and regional sources over several years. Public records and municipal statements show the group was granted more than €1.2 million in total support across multiple programs before its collapse. The organization’s insolvency, announced at the end of March 2026, heightened scrutiny of how those funds were administered.
Investigators have also identified additional, previously unreported grants to the association from private and foundation sources. The Lower Saxony Lotto-Sport-Foundation, for example, provided €8,000 in 2019 for coaching and €20,000 in 2022 for a project called “Democracy goes online,” later demanding a repayment of €2,786.91 after review. Prosecutors are compiling a comprehensive list of disbursements to establish a full financial trail.
Anonymous complaints, a December tip and municipal action
The public prosecutor’s office says it received eight anonymous complaints over time that were for the most part insufficiently detailed to trigger immediate action. A ninth anonymous tip, received in December 2025, contained additional specifics that, together with the BAMF complaint, led to the current investigation. Prosecutors have cited that December submission as a key element in moving the case forward.
In parallel, the City of Hannover filed its own criminal complaint this week. Municipal officials allege potential irregularities in loss-of-earnings compensation claimed by Iri, reportedly amounting to an alleged near six-figure sum. The city’s complaint added a local administrative dimension to the federal subsidy allegations, widening the scope of the inquiry.
Political ramifications within the Hannover SPD
The case has had rapid political consequences. Hülya Iri resigned her seat on the Hannover city council at the end of March 2026, citing health reasons, and she stepped down from her role as deputy SPD faction leader. This week Iri and her two children placed their SPD memberships on hold after party leadership warned of disciplinary proceedings. Party officials described the move as necessary to prevent further distraction ahead of local elections.
The family’s connections within local government have intensified scrutiny. Iri’s son was appointed in early March 2026 to a temporary administrative post in the department led by SPD politician Axel von der Ohe, a mayoral candidate for the September 2026 municipal election. The son had recently worked on von der Ohe’s campaign team, and Iri’s daughter worked in the same city department until the end of 2025. Opposition parties have raised questions about hiring processes and potential conflicts of interest.
Foundation reviews and outside endorsements under question
The association also benefitted from letters of recommendation and endorsements while seeking project funding. Former Lower Saxony migration commissioner Doris Schröder-Köpf, who serves on the board of the Lotto-Sport-Foundation and represents the Kronsberg area as an SPD state MP, is reported to have supported project submissions associated with the association. Foundation officials later subjected one project to a follow-up review and required a partial repayment, according to records disclosed to investigators.
City administrators say Iri pressed for a municipal recommendation for a late-2025 project but did not receive one, in contrast to earlier practice. Those interactions between elected officials, municipal staff and foundation representatives are now part of investigators’ inquiries into whether public endorsement processes were properly observed.
The investigation remains active and prosecutors are continuing document reviews and interviews. The allegations concern a mixture of program-specific subsidy conditions and general fiduciary duties that guide the administration of public funds.
The Hanover public prosecutor’s office has not yet announced whether formal charges will be brought, and all named individuals retain the presumption of innocence while the inquiry proceeds. Authorities said they will release further details as the investigation advances and as legally permissible.
