Valencian family arrested for pyramid fraud scheme exceeding one million euros
The Civil Guard has arrested four members of the same family residing in Silla and El Perellonet and is investigating four other relatives for operating a Ponzi scheme that is believed to have defrauded at least 81 people.
Valencian family arrested for pyramid fraud scheme exceeding one million euros
A family clan based in two municipalities in the province of Valencia has been intervened by the Civil Guard following the discovery of a financial fraud of enormous proportions. Four of its members have been brought before the courts, whilst four others remain under investigation.
Those arrested are two men aged 30 and 46 and two women aged 35 and 38. Among those under investigation are two men aged 70 and 73 and two women aged 68 and 71.
The modus operandi consisted of offering fictitious returns through a shell company. The alleged fraudsters attracted around 700 clients with investment promises. In practice, money contributed by newcomers served to pay alleged profits to those already in the system, thus configuring a financial pyramid without genuine economic backing.
The total damage calculated exceeds one million euros. The ringleader is believed to have used part of the proceeds on trips, luxury items and bank withdrawals totalling 343,000 euros. He also invested 149,000 euros in digital infrastructure.
During house searches, officers seized 26,000 euros in cash, a luxury car, high-performance computers and signature accessories, valued together at more than 257,000 euros. At the same time, 235,000 euros in bank deposits have been seized, eleven motor vehicles, nine properties worth 1,275,000 euros, high-end watches and computer equipment.
The arrested individuals face 84 criminal charges: 81 for fraud, in addition to document falsification, money laundering and membership of a criminal organisation.
Source: ABC
Source: ABC