New twist in Vélez-Málaga 'Paco el Bueno' pyramid scheme investigation as courts turn lottery winner from victim to suspect

There has been a new twist in the high-profile court case underway in Vélez-Málaga on the eastern Costa del Sol concerning the alleged pyramid scheme of Francisco Gutiérrez Ortega, popularly known as Paco 'el Bueno'.

The legal representatives of David Quintero Soto, one of the main victims in the case and a winner of a 7.5 million lottery prize, filed a complaint with the Vélez-Málaga court on Monday 18 May.

They are demanding that Occident GCO Capital Agencia de Valores S.A.U. be summoned as a legal entity under investigation.

The plaintiff’s representatives maintain that the claimant has suffered ‘extraordinary’ financial loss, estimated at approximately 7.5 million euros and this loss is the result of a "systematic and manifestly detrimental" investment scheme managed and directed by Francisco Gutiérrez Ortega.

The request comes after Occident’s defence team submitted documentation to the court on 14 May, at the court’s request, regarding the authorisation of the transactions contained in the company’s records held in the name of the injured party. Having analysed this documentation, Quintero’s lawyers are now requesting "as a matter of urgency" that the company be summoned as a party under investigation.

The central argument of the submission is that Paco el Bueno was not acting as "an unrelated third party" or as an "independent agent, but rather maintained a professional contractual relationship with the Occident group. Lucena Abogados law firm, which is acting on behalf of Quintero, argue that the group itself had acknowledged the existence of a "contract for representation with Occident GCO Capital Agencia de Valores S.A.U.", identified by code F-33684, which was terminated on 7 July 2025, just 22 days before his arrest in Logroño.

On the basis of this connection, the lawyers maintain that Gutiérrez Ortega was part of the company’s commercial and operational network, acting as an agent and representative. They therefore argue that his actions "cannot be separated" from the company's activities, on the understanding that the company benefited from his work in attracting and managing clients, thereby instilling in them a trust based on the Occident brand.

The submission also emphasises that the existence of a power of attorney granted by the aggrieved party cannot, in this party’s view, serve as a "shield" to evade potential liabilities. The prosecution maintains that this power of attorney was granted on the understanding that the management of the assets would be carried out professionally and under the supervision of a regulated entity, and therefore calls for an investigation into whether there was an abuse of that power and whether internal controls failed.

The legal team representing David Quintero, who deposited his money with Occident in 2014, invokes Article 31 bis of the Criminal Code, which governs the criminal liability of legal persons. According to the submission, there may be evidence of offences of breach of trust and/or aggravated fraud, without prejudice to any others that may arise from the criminal investigation. The request is based on the possibility that the conduct under investigation took place in the course of the company’s business and for the direct or indirect benefit of the entity.

The lawyers also point to a possible "serious failure in organisation and control"on the part of the group’s entities, arguing that they failed to fulfil their supervisory duties regarding their representative’s operations. The submission even refers to a possible "failure to exercise due diligence" and raises the question of whether Occident should have triggered warning mechanisms "in the face of repeated transactions that were highly detrimental to the client". The prosecution argues that these issues must be investigated by the court to determine whether the entity was criminally or civilly liable.

Sources at Occident have said to SUR that the case opened in Vélez-Málaga against Paco ‘el Bueno’ is still at the preliminary investigation stage, as part of an ongoing legal proceeding so cannot comment. The company emphasises that it “has been part of the process from the outset”, having filed a complaint as an affected party and maintains that “it will be the judicial authority that determines its procedural status and the extent of its involvement in the case”.

The company has told SUR that it is cooperating "fully" with the courts and the relevant authorities, providing "all the information required" and that it "will continue to act in accordance with what is determined in the legal proceedings".

Furthermore, Occident highlights that since it became aware of the case, it has offered personalised support to those affected who have contacted the company and has analysed each file. According to the company, it has so far reached agreements with 110 affected parties who have bank records tracing the origin of the funds and sufficient supporting documentation.

Meanwhile, according to information obtained by SUR, David Quintero had been summoned to give evidence as an affected party. However, following an examination of the case and the numerous transfers made to his accounts by dozens of affected parties, the court in Vélez-Málaga decided to suspend his witness statement as an affected party and instead summon him as a suspect.

He is being investigated as part of Paco ‘el Bueno’s’ inner circle, who travelled with him to foreign countries including Hungary and has all his assets frozen as a precautionary measure, according to sources close to the investigation. An employee of Vélez-Málaga town hall, with the initials O. M., finds himself in the same legal situation.

The 'Paco el Bueno' case has now attracted more than 300 complainants since the suspect’s arrest in Logroño. According to those affected, the alleged fraud could exceed 200 million euros, although in court proceedings claims have so far been quantified at much lower amounts, around 16 million, according to figures cited by the parties in previous public hearings.

Just two weeks ago, around twenty of those affected gathered outside the courthouse in Vélez-Málaga to demand more staff and prevent the investigation from stalling. Among them was Rafael Chica, who claims to have handed over 349,000 euros to the suspect, and who reported that he is “on the verge” of losing his home. Lawyer Marta Fuentes, who represents dozens of victims, described the case at the time as “particularly voluminous and sensitive”.

The application submitted on Monday by David Quintero’s defence team now opens a new case in an investigation that is already expected to be lengthy and complex. It will be up to the court in Vélez-Málaga to decide whether to accept the request to summon Occident GCO Capital Agencia de Valores S.A.U. as a legal entity under investigation or to reject the request made by this private prosecution.