Nine property scammers, including the ringleader, people including Carlos ‘Charly’ García Roldán, are on trial for Mallorca’s biggest real estate scam.
The men are on trial at the Court of Instruction number 11 of Palma, and are accused of deceiving a total of 235 people with 32 ghost promotions on the island.
Both he and the rest of the defendants are charged with crimes of belonging to a criminal group, aggravated fraud, documentary falsehood, punishable insolvency Y money laundering.
The fraud, which was uncovered in 2018, was allegedly led by Carlos García Roldán, whose company promoted the phantom housing developments.
Before being arrested the island for Colombia where he was extradited back to Spain in February 2019 following a joint Guardia Civil-Colombian police operation.
The Palma court is also holding a bank liable for negligent control and violation of regulations related to property dealings and money laundering.
The bank, used by Roldán’s Casa Lujo front company, “must answer for not having required the promoter to open a special account and the constitution of necessary guarantees”. The bank would have known that the payments were being made for housing developments. “It knew about or should have known about the promoter’s activity.”
The victims had signed contracts reserving properties with the bank but who then did not have the obligation to apply the guarantees required by building legislation.
According to the charge sheet, García Roldán and the rest of the defendants created the company for the commercialization of future off-plan homes, and the promotion and sale of real estate assets between 2015 and 2018, without any type of professional experience, or financial resources to do so.
They are accused of defrauding buyers of 3.3 million Euros , much of was spent on as luxury restaurants, escort services, casinos, expensive jewellery and vehicles
Bail was set at 4.3 million Euros which could not be met, so the detainees remain in preventive custody in La Palma.
The trial continues.