Eleven arrested in Valencia for pyramid scam via WhatsApp with over 50,000 euros defrauded
National Police arrested eleven people in Valencia for pyramid scams organised through WhatsApp. At least 16 victims lost more than 50,000 euros.
Eleven arrested in Valencia for organising fake pyramid investment schemes via WhatsApp
The National Police have arrested eleven people in Valencia as suspected members of a criminal group dedicated to pyramid scams through fake investments, according to eleconomista.es. The arrestees would summon their victims to hotels and event halls in the city to promise them "substantial profits" in exchange for cash contributions and recruitment of new investors.
Investigators have identified up to 16 victims to date and estimate financial losses exceeding 50,000 euros, according to a police statement. The operation began in early July, when officers from the Russafa district police station received a report pointing to a possible large-scale pyramid scam.
Based on that initial report, officers compiled several additional cases with the same modus operandi. Analysis of the information confirmed that all of them employed a method consistent with a classic pyramid scheme, which led investigators to suspect that the actual number of affected parties could be considerably higher.
The alleged promoters of the scam organised information meetings through groups in instant messaging applications, mainly WhatsApp. At those meetings, held in hotels and halls in the capital of Túria, they explained how the investments would work and convinced attendees that by making periodic monetary contributions they would become part of a network financed by the entry of new members.
Each victim was required to make an initial investment of between 250 and 1,440 euros. In return, they were promised benefits proportional to the number of people they managed to recruit to the organisation. Contributions were always made in cash, handed over directly, without the affected parties ever receiving any receipt for the amount delivered.
After making payment, the victims received neither the promised profits nor the return of their invested capital. Police warn that there could be more victims who have not yet filed a report.
Following the investigation, officers managed to fully identify the alleged members of the group and determine the division of tasks within the organisation. The eleven arrested individuals were released after giving statements, although with the obligation to appear before the judicial authority when required. They face charges of fraud and membership in a criminal group.
Source: Google News ES — Crime (es)