Five members of a family in Alicante, Madrid, and Almería have been apprehended by the Guardia Civil. Investigators allege that they are part of a criminal organisation that defrauded merchants of over three million euros by promising fictitious international loans. Four victims have been identified by investigators; however, they believe that there are more than twenty.

Agents searched the family properties, which included a luxury residence in one of Alicante’s most exclusive residential areas and a storage room. Agents confiscated vacuum-packed cash during the search (pictured.)

The operation led to the seizure of a luxury vehicle, numerous bank accounts, electronic devices, and documentation related to the fraudulent transactions, in addition to nearly €27,000 in cash. The seizure of movable and immovable property, including a residence valued at over €2 million, was also requested.

The operation was initiated at the end of last year in response to a complaint from a merchant who had been defrauded of over 70,000 euros while applying for a supposed international loan of one million euros. This complaint revealed a criminal network with numerous victims in various provinces of Spain and even abroad. This initial complaint was succeeded by another, which claimed that a company that had submitted an application for a six million euro loan had been defrauded of over 600,000 euros.

Entrepreneurship recruitment

Entrepreneurs who were unable to obtain conventional financing sought alternatives in international private capital, so the organisation recruited them. A network of recruiters, often unaware of the scam, established the initial contact.

The organization’s members subsequently created fraudulent documents, advertised their services in offices located in reputable business districts, and scheduled appointments with a legitimate notary in Paris. The notary, who was unaware of the scheme, merely verified the signatures.

The victims were requested to pay additional amounts, citing bureaucratic or financial complications, after they had already paid the initial fees for management, broking, insurance, or purported international taxes. They never completed the transfer. The fraud was discovered by some victims after they had made multiple payments.

Currently, we have identified four casualties, but we anticipate that the total number of victims could exceed twenty. The economic loss is expected to exceed three million euros. The provinces of Alicante and Almería are the primary locations of those affected.

The married couple who were considered the ringleaders of the scheme were among those detained, and they were already apprehended in 2022 for similar offences during a police operation. The individuals involved in the scheme were able to maintain a high standard of living. The man allegedly violated the order to depart the country on numerous occasions to conduct transactions associated with the scam, including signing at a notary in Paris and collecting cash. Additionally, the other suspects received comprehensive training and were responsible for specific tasks within the conspiracy, including recruiting, translating, and preparing legal documents.

The Urban and Economic Crimes Team of the Alicante Judicial Police Unit conducted the operation with the assistance of the Technological Investigation Team of the same command.