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THREE people have been jailed for nearly 28 years over a €3.3 million real estate scam in Mallorca- the biggest recorded case on the island.
Promociones Lujo Casa, under the leadership of Carlos Garcia Roldan, defrauded 235 people between 2015 and 2018.
Garcia Roldan fled from Colombia and was extradited in Spain in 2019. He spent nearly four years in prison before being released.
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The Balearics Provincial Court sentenced the plot ringleader Garcia Roldan, also known as ‘Charly’, to 14 years and nine months behind bars.
He was found guilty of fraud, punishable bankruptcy, money laundering, and belonging to a criminal group.
Michelle Pilato received a sentence of nine years while a contractor involved in the scam was given four years.
The court acquitted three others.
Promociones Lujo Casa is based in Coll d’en Rabassa.
The company offered off-plan sales to unsuspecting clients despite not having the money or licenses for new construction.
The company lured potential victims to the website by using images of architects and property promotion photos.
As part of the ruse, they placed banners and posters on pieces of land which did not belong them to try to convince buyers that their properties were real.
32 bogus promotions netted 235 victims who parted with deposits of up to 10% for ‘new homes’ in Llucmajor, Marratzi, and Palma
Money was laundered from Lujo Casa, including fake salaries paid to employees.
The amount of money spent on escorts and restaurants, casinos, vehicles and jewellery was staggering.
When buyers complained of delays in the construction of their new homes, they were told that building permits had been delayed.
The customer was warned that if he threatened to contact the authorities, he could lose his entire investment.
According to a statement from the Provincial Court: “The buyers relied on the appearance that they were professional and solvent by opening offices for the public and advertising their properties on real estate websites, posting posters on land plots and contract documentation. They paid the amount due through cash deposits, transfers and other methods of payment.”
“Individual deposits ranged from €5,000 to more than €100,000, totalling more than €3.3 million,” it added.
“This was a fraudulant structure, designed and maintained over a period of time. It wasn’t a simple project in real estate that was hampered by economic or administrative problems.”
The court concluded, “It was fully known that contracts with buyers would not be fulfilled from the outset.”
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