National Police dismantle criminal network that laundered over 9 million euros through online scams in Mallorca and Barcelona
The Capital Laundering Unit in Palma has dismantled a criminal organisation that defrauded thousands of European citizens and laundered over 9 million euros. The operation concluded with nine arrests in Sitges (Barcelona).
National Police dismantle criminal network that laundered over 9 million euros through online scams in Mallorca and Barcelona
The Capital Laundering Unit of the National Police in Palma has dismantled a criminal organisation dedicated to committing internet fraud and laundering the proceeds. The operation, the result of two years of investigation, culminated in the arrest of nine people in Sitges (Barcelona) and the seizure of assets valued at approximately two million euros.
According to the police force, the network defrauded thousands of citizens from European countries, mainly from Germany and Belgium. The fraudsters channelled money through a complex corporate structure with apparent headquarters in Mallorca and Barcelona.
The investigation began following two communications from the German prosecutor's office concerning fraud in the sale of various products, from mobile telephones to an excavator. In both cases, the victims' money ended up in a company supposedly based in Mallorca and specialising in boat rental.
Officers confirmed that it was a shell company, with no employees, offices or boats. Its sole purpose was to simulate that payments came from German tourists, which made it possible to circumvent capital-laundering controls by exploiting the island's popularity among travellers from that country.
Several of those arrested forged documents to give the appearance of legality to their actions, whilst the fictitious company appeared to be managed by a person living in extreme poverty.
After painstaking investigation, officers discovered that the group had built a network comprising 16 companies and 54 people, most of them residing in the province of Barcelona.
The offences committed by the organisation were of various kinds. On one hand, they created 26 web portals that pretended to be online shops and managed to defraud 3,500 German citizens. On the other hand, they impersonated security departments of banking entities to gain access to business owners' accounts. In a single operation, they managed to transfer 100,000 euros from a Belgian citizen.
To avoid prosecution in Spain, all victims resided in foreign countries. The network simulated real financial transactions to justify the fortune of its leaders in Spanish territory. Faced with this situation, investigators requested the collaboration of Europol and worked jointly with Belgian police to resolve numerous fraud cases.
In addition to the fictitious boat-rental company in Mallorca, those arrested created an increasingly complex corporate network, with companies that supposedly operated in different sectors. A significant portion of the funds ended up invested in cryptocurrencies, whilst another part was used to finance the luxurious lifestyle of those detained.
At the time the investigation began, officers had already blocked a hundred bank accounts with balances exceeding 500,000 euros. During the search of the luxury residence in Sitges, where the network's leader lived with his partner, numerous high-value items were seized: two Italian sports cars, four other high-end vehicles, two jet skis, cryptocurrencies worth approximately 200,000 euros, over 100,000 euros and 1,300 dollars in cash.
Half a dozen gold bars were also seized, a collection of 18 luxury watches and abundant jewellery and articles from prestigious brands that were found piled throughout the property.
Source: Majorca Daily Bulletin
Source: Majorca Daily Bulletin