Spanish authorities on the island of Mallorca are investigating a multi-million fraud that is believed to have netted over 50 million Euros.
The investigators claim that the fraudsters scammed local “investors” who deposited cash in a bank in the Magalluf area of the resort island.
The cash was later transferred to accounts in Turkey, where it was allegedly laundered and where so much money was being moved that it couldn’t be done through one bank.
The fraudsters used an unsuspecting front man for the fraud who is believed to be an Irish national living on the island who is reported to have been under medication and who was paid just a 1,000 euros per month to act as the chairman of the supposed international investment company, but who in effect was used as cover and had no access to company bank accounts.
His home was one of the properties raided and searched but police believe he was unaware of the fraud. Apart from the monthly salary, it is doubtful that he benefited from the fraud.
Local media have reported that his passport expired three years ago, he didn’t use email and he had no bank cards and who hadnt left the island in seven years.
Police say that he is an alcoholic and that fraudsters had arranged power of attorney over him. The fraudsters then opened and closed companies in Ireland using his name, which is being reported he didnt know about.
The investigation is being coordinated with the European Union Agency for Criminal Justice Cooperation with officers from Germany, Sweden, Ireland and the UK involved.
According to the agency’s press statement the fraudster used ” a series of false websites, the criminal network deceived a large number of victims by selling false financial investment products, shares and bonds while never actually investing the money it received. A complex network of dummy companies and financial agents was set up across Europe to hide the origin of the payments and profits made”.
German police have also established that there was a close relationship between one of the fraudsters and a former National Police officer who is also under investigation. In February 2020, Germany requested his extradition.
Two UK nationals who ran a local business on the island are also ebing investigated for their role in laundering the profits of the fraudsters.