Costa News Spain Breaking News | English News in Spain.
DOZENS of small investors in Spain were conned out of €7.7 million via a bogus crowdfunding scheme between 2022 and 2024.
Six people have been arrested by the Policia Nacional in A Coruña and Madrid..
A dozen bank accounts have been blocked as well as the seizure of a property worth €60,000.
READ MORE
Advertisements were placed in buildings and on social media promoting the high return for new restaurants. Holiday homes are available for rent.
The fraudsters used false information to create a phony business project that would gain the confidence of investors.
But the transferred funds did not go towards the promised investment and in many cases projects were abandoned shortly after they began, with the excuse being that the business had failed.
Police have so far found 63 victims, but believe that this is just the tip of the iceberg. The real number could be as high as 800.
The criminals also defrauded Social Security out of over €1 million by using front men and deliberately not paying taxes and contributions.
The scheme involved opening 40 accounts in different banks and making transfers constantly between them. This made it hard to track all the illegally obtained money.
The mastermind of the scheme eventually deposited everything in a bank account.
Policia Nacional has confirmed that their investigation continues and further arrests cannot be ruled out.
Click here to read more Crime & Law News from The Olive Press.
