Chinese mafia in Spain: 64 defendants agree plea deals to avoid prison after 16-year investigation
The Anti-Corruption Prosecutor's Office reached plea agreements with 64 defendants from the network led by Gao Ping. The leader still faces 47 years in prison.
64 Chinese mafia defendants avoid prison after agreeing plea deals with Prosecutor's Office
The major judicial case against the criminal network of Chinese origin led in Spain by businessman Gao Ping has largely concluded with plea agreements. According to La Vanguardia, the Anti-Corruption Prosecutor's Office and the State Legal Service have reached agreements with 64 of the defendants, whilst a further nine charges have been withdrawn, including that against actor Ignacio Jordá, known as Nacho Vidal. The National Court issued the corresponding plea agreement sentence on 13 July.
A 16-year investigation into fraud, money-laundering and violence
The investigation began in 2010 and materialised in February 2012 with the detention of a criminal organisation that had extended its reach across different strata of Spanish society. In the offices alone that were searched during the arrests, eight million euros in cash were found. The operation, coordinated by the Anti-Corruption Prosecutor's Office, the Drug and Organised Crime Unit of the Police and the National Court, uncovered the massive entry of products—90% of which were illegal—that converged in the Cobo Calleja industrial estate in Madrid, as well as a sophisticated money-laundering scheme towards China with the collaboration of public officials and individuals with money hidden in tax havens.
The organisation operated under the iron control of Ping: when something went wrong, the response was physical violence, beatings and threats. The network also granted loans within the Chinese community at high interest rates, with repayment guaranteed by intimidation, and used illicit money to acquire vehicles and properties with which to legitimise the profits.
The highest sentences drastically reduced
The most striking case is that of Lin Wei, one of Gao Ping's closest lieutenants. The Prosecutor's Office had sought 36 years in prison; following the plea agreement, the sentence was reduced to six years and three months, replaced by fines to avoid actual imprisonment. The recognised offences include criminal organisation, active bribery, threats, unlawful detention, money-laundering and six offences against the Public Treasury.
Catalan businessman Rafael Pallardó, a key figure in the money-laundering scheme, managed to reduce a request of 15 years to one year and a half in prison. According to the judgment, Pallardó collected large quantities of cash in Madrid and transported it physically to other places, including Andorra, where he operated with Andorran Private Bank (BPA).
The role of Nacho Vidal's sister
Connected to the Catalan businessman by a romantic relationship, María José Jordá—alias Cote—has also agreed to a sentence of one year and a half in prison. She was listed as attorney-in-fact for Vidal Productions, which allowed her to issue false invoices that served as cover for international transfers. She participated in the distribution of cash and made transfers from the accounts of her brother, his wife Francesca James, and her own mother.
The charge against Nacho Vidal was ultimately withdrawn. The judgment states that "Ignacio Jordá was unaware that his sister was making these capital transfers outside legally established channels and that she was collaborating with Pallardó in that activity".
One million euros weekly towards China
The scale of the operation is reflected in the figures contained in the judicial resolution: between 2009 and 2012, the organisation deposited a total of 60.4 million euros in cash in bank entities, money linked to smuggling and tax fraud offences. Of that amount, 36.9 million euros were sent abroad.
The Pallardó route proved insufficient for the organisation's needs, which could move as much as one million euros weekly from Spain to China. To meet that demand, another group was used, called Chequian, run from China, which disguised money movements as immigrant remittances or ordinary bank transfers.
The network extended its operations beyond Spain: the judgment detects money transports to Portugal, France, Italy, the Czech Republic and Hungary.
Corruption of officials proven
The National Court finds proven that the organisation managed to corrupt public officials, including members of the State security forces. "The level of penetration of this organisation in different layers of Spanish society led to obtaining preferential treatment and favours from some members of the Spanish administration," the judgment states.
Gao Ping still awaiting trial
Despite the 64 agreements reached, 33 defendants have refused to reach a deal, including Gao Ping himself, who faces a request for 47 years in prison, and his wife Lizhen Yang, for whom the Prosecutor's Office seeks 33 years. Legal sources consulted by La Vanguardia indicate that there is still no date set for oral proceedings and that, in all likelihood, the hearing will not take place before 2027.
Source: La Vanguardia