Alex Trelinski
A SCAM based in Benidorm promising instant high returns on investments has been busted by the Policia Nacional after pocketing over €339,000 since 2021.
Four people- all Spaniards- were arrested in the Costa Blanca city and have been charged with fraud, misappropriation, misleading advertising, money laundering and belonging to a criminal group.
The investigation started in June 2023 when a man filed a complaint in Benidorm that he had been conned out of €21,000 by a financial broker.
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The so-called expert promised monthly returns of 10% from bogus companies as well as a one-off investment bringing a 20% dividend ‘within days’.
He also conned the victim into investing in a gold company where the monthly interest was 23%.
The scam included the creation of investment websites of companies apparently located in London to give the appearance of legality.
Investors could access the sites with their username and password to check the amount they invested and all the profits they were making.
The complainant had a minimum investment period of six months, after which he wanted to withdraw what he put in- plus all of the interest accrued.
The scammers refused saying that more interest could be generated if the initial sum remained in the pot, but after a year and not collecting anything, the victim reported what happened to the Policia Nacional.
Investigators uncovered a company that had been created in Spain and a bank account associated with it.
That company was formed by ‘front men’ acting for the scammers, and their function was to eventually transfer the deposits into other accounts, and then get all the money moved to Lithuania.
The police discovered the gang had been running at least eight bogus companies since 2021 to make money transfers.
