Arrests in Malaga after gang smashed that defrauded more than 20m euros through mobile phone sales

Officials of Spain's regional inspection unit of the tax agency in Andalucía and Guardia Civil officers have dismantled a criminal organisation specialising in an IVA Spanish sales tax fraud through the sale of mobile phones and other electronic devices. The joint Operation Backmobile has therefore resulted in the arrest of 15 people. In addition, the officers seized 9,000 mobile phones, more than 200,000 euros in cash, 35,500 dollars in cryptocurrencies and 75 vehicles. It has been estimated that the fraud exceeds 20 million euros.

The investigation focused on the activity that the dismantled criminal organisation had been carrying out since 2019, using a complex business network at different levels throughout Spain. The fraudsters were managing more than 20 trading companies, including mobile phone shops. This structure was designed to evade the payment of IVA.

There were two main activities: supply of imported phones and purchases in large supermarkets, taking advantage of sales promotions.

For later commercialisation, the organisation devised a fraudulent scheme in which it simulated a chain of resales through alleged shipments of mobile devices via parcel delivery. Investigators were able to confirm that, instead of the actual electronic equipment being sold, the packages were simply filled with wood or even water bottles, matching the weight stated on the invoices. All of this was done to justify the sale and delivery of the goods while also making it harder to trace the merchandise.

Ultimately, the organisation would sell the devices as refurbished to end consumers located both in Spain and in other European countries.

The implementation of various IVA fraud schemes allowed them to sell large quantities of mobile phones at a significantly reduced price compared to their competitors, enabling them to corner markets and make substantial financial profits.

During the course of the investigation, a complex financial analysis was carried out, which revealed that the leaders of the criminal organisation under investigation dedicated most of the profits from their illicit activity to the acquisition of real estate.

Specifically, 146 properties and more than 280 bank accounts used to channel funds from these proceeds have been blocked.

At the end of last month, the operational phase of the investigation took place. There was a total of 23 searches in commercial companies and private homes throughout Spain: nine in the province of Malaga, four in the province of Valencia, three in the province of Seville, three in the province of Madrid, two in the province of Cadiz and two in the province of Barcelona.

A total of 15 people have been arrested: five in Malaga, five in Valencia, two in Madrid, one in Seville, one in Cadiz and one in Barcelona.