Fifty people in Malaga province defrauded of more than 4.6 million euros after entrusting their savings in bogus real estate investments

Two individuals - a man and a woman - have been brought before a court in Malaga province for swindling some 50 people out of more than 4.6 million euros through an elaborate pyramid scheme. Their victims included bank branch managers and experts in the financial sector.

The pair's 'modus operandi' involved attracting individual investors and convincing them to hand over large sums of money on the promise of monthly returns of at least 5% through mortgage loans and real estate investments. In reality, these new funds were used to pay the interest on the old ones.

The events date back to 2021, but complaints did not come to light until 2024, when the victims noticed that the investments were never made. The two perpetrators had background knowledge in tax and investment matters. They acted as advisors and guarantors, even organising meetings in the offices of real entities to feign solvency.

In addition to the victims' funds, they profited from parallel commissions and irregular diversion of funds, without the corresponding contracts. According to the police investigation, the capital raised exceeded two million euros, a large part of which was managed outside the legal circuit, without traceability or tax control.

It appears that the mastermind of the scheme was a man who operated with total discretion, even hiding out in an inland area of the province to evade justice. He used his partner at the time, who was formally listed as the administrator of the trading company, as a vehicle for the illegal activity.

The two fraudsters were brought before the courts for their alleged responsibility in the crimes of aggravated fraud, false documentation, misappropriation and money laundering. The judicial authority ordered precautionary measures on their movable and immovable assets as well as preventive asset freezing.