A new chapter has opened in the expanding scandal surrounding ties between high-profile political figures and convicted late sex offender Jeffrey Epstein, as the European Union’s official anti-fraud watchdog has launched a formal investigation into former EU Trade Commissioner Peter Mandelson.
Mandelson, who was already forced out of his post as UK Ambassador to the United States in September 2025 when the full scope of his long-standing personal relationship with Epstein came to light, now faces scrutiny over alleged misconduct that dates back to his four-year tenure as EU trade commissioner from 2004 to 2008. The European Commission first referred the allegations to the European Anti-Fraud Office (OLAF) roughly two months ago, and OLAF confirmed in a statement Friday that investigators have now obtained sufficient information to move forward with a full formal probe.
The investigation’s formal mandate covers all of Mandelson’s term as a European Commission member, and is restricted to actions involving staff and officials of EU institutions. OLAF’s primary focus will center on communications and interactions between Mandelson and Epstein that occurred during his time as EU commissioner, but additional unconnected allegations have also emerged that stretch beyond this period. Leaked email correspondence has linked Mandelson to Epstein during the 2010 eurozone sovereign debt crisis, with claims that Mandelson provided the disgraced financier advance confidential warning of a massive €500 billion eurozone bailout package designed to contain Greece’s debt crisis and stop its spread across the bloc. Earlier this year, newly uncovered email exchanges between the two men prompted the UK’s Metropolitan Police to open a separate criminal investigation into claims Mandelson leaked market-sensitive information while he served as UK Business Secretary, a post he held after leaving Brussels in 2008 until 2010.
While Mandelson has not issued a public statement on the new OLAF investigation, BBC sources confirm he has repeatedly denied any criminal wrongdoing and has stated he never acted out of personal financial gain in any interactions with Epstein.
OLAF officials have clarified that the body does not hold direct prosecutorial authority. If the investigation uncovers evidence of criminal activity, the case will be referred to the European Public Prosecutor’s Office for further action. The agency’s core remit covers probes into fraud involving the EU budget, alongside corruption and serious misconduct by EU institutional officials. After concluding an investigation, OLAF can issue binding recommendations for sanctions to relevant EU authorities, which can range from judicial and financial penalties to administrative or disciplinary action. One of the most significant potential disciplinary outcomes is the revocation of the former commissioner’s EU pension, a benefit that former Commission members are entitled to receive after leaving office.
Investigators now plan to conduct a full review of all available relevant documents, including the recently unearthed email correspondence, and carry out IT forensic analysis to verify the authenticity and context of materials. OLAF noted that given the passage of more than 15 years since the end of Mandelson’s tenure as commissioner, it remains unclear how much complete evidence will be available, and the agency declined to confirm whether additional allegations have been received since the initial referral in February.
The scandal continues to send shockwaves through UK politics, where questions persist about how Mandelson’s appointment as US ambassador was approved. Earlier this week, Sir Olly Robbins, the former top civil servant at the UK Foreign Office, told lawmakers he faced inappropriate pressure to rush through Mandelson’s nomination and appointment to the ambassadorship, despite growing concerns about his long-standing links to Epstein.