Paco 'el bueno' gives evasive answers to the judge in Vélez-Málaga as pyramid scheme fraud case continues

Francisco Gutiérrez Ortega, popularly known as Paco 'el bueno', gave evidence for the first time on Monday 15 June before the judge presiding over the high-profile case in Vélez-Málaga on the eastern Costa del Sol, concerning the alleged pyramid scheme of which he stands accused.

The hearing, requested by the defendant himself after he had previously invoked his right to remain silent, lasted around five hours, with a break of just ten minutes. His testimony comes in one of the biggest investigations into fraud in recent years in the Axarquía area of Malaga province.

The proceedings involve more than 300 complainants and those affected have estimated the losses at over 200 million euros. The company Occident, for which Gutiérrez worked, has reached settlement agreements with more than a hundred victims, who have bank records tracing the origin of the funds and sufficient supporting documentation.

According to sources close to the investigation, Paco 'el bueno' spent around three hours answering questions from the judge and a further two hours responding to questions from his lawyer and the defence teams of several relatives who are also under investigation, including his wife, who is currently on bail and his brother-in-law. Around twenty lawyers involved in the case were present in the courtroom.

The same sources describe a statement marked by evasiveness and constant references to documentation that the suspect claimed to have in his possession. "I’ll prove it all, I have documentation for everything and messages for everything," was reportedly one of the most frequently repeated responses during the hearing. At times, according to these sources, he even challenged several of those present with remarks such as "call the guy at the bank".

Paco 'el bueno' tried to distance himself from the image of being the ringleader of a fraudulent scheme and portrayed himself as ‘a victim’ of people who, according to his account, had taken advantage of him. During the hearing he claimed that all the money he received "went into Occident accounts" and maintained that 95 or 96 per cent of the transactions were carried out by bank transfer because, as he stated, he "would not have accepted cash".

The suspect also referred to property transactions linked to Granada and Malaga provinces, pointing the finger at David Quintero, one of the main individuals affected and also under investigation in the case following a court order. Paco 'el Bueno' claimed that these property-related investments were worth around seven million euros and that this sum could be used to repay part of the money invested by the victims.

During his appearance, he also explained his move to Logroño, where he was arrested by the National Police on 29 July 2025. According to his account, he moved there to escape the “death threats” he said he was receiving in Vélez-Málaga. He denied, however, that he had fled from the police and claimed that “a certain police officer” was aware of his situation. In Logroño, he added, he had enrolled his daughters in school.

The suspect also denied having any foreign bank accounts, either in his own name or in the names of his relatives. When asked about the money found in accounts held by the agency he ran with his brother-in-law, he reportedly gave answers deemed “evasive” by sources close to the investigation. As part of his personal defence, he claimed that he earned between 13,000 and 14,000 euros a month from Occident and that he had been working “since the age of nine”.

Monday’s statement adds to the numerous ongoing lines of inquiry in the investigation. One of the most recent concerns Occident GCO Capital Agencia de Valores S.A.U., after the legal representatives of David Quintero Soto—who once won a 7.5-million-euro lottery prize and is one of the main affected parties in the proceeding, requested that the company be summoned as a legal entity under investigation.

The argument put forward by the private prosecution 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 an entity within the Occident group. The lawyers maintain that there was a contract for a natural person acting as a representative, identified by the code F-33684, which was terminated on 7 July 2025, just 22 days before his arrest.

Quintero’s lawyers argue that the existence of a power of attorney granted by the affected party cannot serve as a ‘shield’ to evade potential liabilities. The prosecution is calling for an investigation into whether there was an abuse of power, whether the organisation’s internal controls failed, and whether the legal entity could face potential criminal or civil liability, invoking Article 31 bis of the Criminal Code, which governs the criminal liability of companies.

Sources at Occident told SUR that the case is still at the preliminary investigation stage, as part of ongoing legal proceedings that are partially subject to secrecy of proceedings. The company emphasised that it has “been part of the process from the outset”, having filed a complaint as an affected party, and maintained that it will be the judicial authority that determines its procedural status and the extent of its involvement in the case.

The company also stated that it is cooperating ‘fully’ with the courts and the relevant authorities, providing ‘all the information requested’ and that it will continue to act in accordance with the outcome of the legal proceedings. Occident also noted that, since becoming aware of the case, it has offered personalised support to those affected who have contacted the company and has reviewed each case file.

According to the insurer, it has so far reached agreements with 110 affected parties who have bank records tracing the origin of the funds and sufficient supporting documentation. This account contrasts with the request from some prosecutors, who are calling for the investigation to be expanded to cover the company’s role and the mechanisms for supervising transactions linked to the person under investigation.

The high-profile case continues to have a huge impact on Vélez-Málaga and other towns and villages in the Axarquía, where many of those affected claim to have handed over their life savings to Paco 'el bueno'. In recent weeks, victims have gathered outside the Vélez-Málaga courts to demand more staff and prevent an investigation deemed particularly complex and sensitive from stalling. In fact, on Monday several of them gathered in the vicinity and shouted at the police vehicle in which the alleged fraudster was being transported.

Monday’s statement marks a new step in an investigation that is expected to be long and complex. After hearing the main suspect for the first time, the court will need to continue analysing bank documents, financial transactions, testimonies from those affected, and the role of the individuals and companies linked to a case that is already among the largest investigations into alleged fraud currently underway in Malaga province.