The National Police have dismantled a network in nine provinces, including Alicante, that involved the receipt of high-end cell phones that had been stolen or acquired through fraud and identity theft.
In the course of the operation, four individuals were arrested in Madrid (3) and Fuengirola (1), while an additional seventeen individuals were investigated in Madrid, Alicante (1), Girona, Malaga, Seville, Almeria, Granada, Jaen, and Cadiz. The leader who was arrested in Madrid was working with his wife, a tax technician who was also arrested.
The modus operandi of the scheme involved the acquisition and sale of high-end mobile phones (and other electronic devices) at prices that were lower than their market value. These devices were acquired through a variety of criminal activities, including fraud, theft, and identity theft. The devices were subsequently sold on second-hand online platforms.
The ringleader maintained a network of collaborators in various locations throughout Spain who procured and supplied him with the devices, allegedly generating illicit profits exceeding €300,000 while operating from his Madrid residence.
Officers confiscated 136 mobile phones, five tablets, five smartwatches, four laptops, and one desktop computer during the search of the main suspect’s residence.
The investigation commenced in March 2022 as a result of cyber patrols and web content surveillance conducted by agents of the Central Cybercrime Unit. At that time, they identified a profile on a reputable secondhand buying and selling app with thousands of sales. The profile was offering a variety of high-end mobile phones and other electronic devices, both sealed and new, at prices that were significantly lower than the market.
An investigation was initiated into the primary suspect and proprietor of the profile, as it was suspected that the price decrease was the result of the devices’ illicit origin.
The agents verified that a significant number of telephone terminals were stolen by disloyal employees at various telephone retailers in Fuengirola (Málaga) and Alcalá de Henares (Madrid). Additionally, they discovered evidence that these employees sold numerous phones by fraudulently obtaining their customers’ identities, all of which were ultimately acquired by the primary suspect.
Similarly, the agents identified numerous fraudulent transactions in which the ringleader was able to acquire devices for his profile by depositing funds from schemes into virtual wallets. Their collaboration with the trading platform made this possible.
Collaborative network
The agents discovered that a significant number of the sold phones were either stolen or sourced from his network of collaborators as the investigation progressed and after studying and monitoring a large sample of them. He facilitated the exchange of substantial sums of money and mobile phones at prices that were significantly lower than the market for these individuals, who were situated in various cities throughout the nation. The transaction resulted in illicit profits that exceeded €300,000.
In the province of Malaga, agents apprehended one of his primary intermediaries. Similarly, there are seven defendants in the Malaga municipalities of Fuengirola and Ronda in relation to his network of collaborators, and an additional 12 individuals are under investigation in Madrid, Granada, Jaén, AlmerÃa, Alicante, Girona, Sanlúcar de Barrameda (Cádiz), and Dos Hermanas (Seville).
With the assistance of his wife
The ringleader collected and sent the devices from his residence in Madrid, where he operated through courier companies. Along with his wife, who is also under investigation, he reported the theft of numerous devices from his residence. Officers were able to locate some of the devices on a reputable trading platform, where they were being offered for sale.
The prime suspect’s wife was accountable for overseeing his company’s bank accounts and recordkeeping, as well as for offering protection and leveraging her experience as a tax inspector. At the conclusion of June, both individuals were apprehended.
Officers confiscated 136 cell phones, five tablets, five wearables, four laptops, and one desktop computer upon conducting a search of his house. Their origin remains uncertain following the request for pertinent information from the service providers.
Author: Derek Appleton
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