Criminal network dismantled for embezzling over 100 million euros from a construction company through fraudulent real estate sales in Estepona.
The National Police have arrested seven people, including relatives of the former CFO and the bankruptcy administrator, for their involvement in the fraudulent sale of properties at irregular prices.
According to sources from other digital newspapers, seven people have been arrested in Málaga after an exhaustive investigation that reveals how a former financial director and a bankruptcy administrator diverted more than 100 million euros from a bankrupt construction company through the fraudulent sale of properties in Estepona and other locations on the Costa del Sol at prices well below market value. Authorities discovered that the sales were made through companies linked to the detainees, causing losses of millions and making it impossible to pay creditors.
The National Police have dismantled a criminal network that operated from a bankrupt construction company in Málaga, stripping creditors of millions of euros and properties. The case began to take shape in 2017, when the group's companies, in financial crisis, began their bankruptcy proceedings. According to investigators, the company's former financial director and the bankruptcy administrator in charge of the process worked together to divert company assets.
Illicit operation under the guise of bankruptcy proceedings
The scheme began to unravel in September 2023, following a complaint filed with the Court of Instruction number 3 of Málaga. The Prosecutor's Office specializing in economic crimes and the National Police began to investigate the suspicious sales operations of assets that were being carried out at very low prices. Among the diverted assets, the properties located in Estepona, on the Costa del Sol, stood out, where several properties under construction were sold to companies linked to those involved at prices of around 70,000 euros, well below their real value.
In addition, investigations revealed that other assets, such as parking spaces, were sold for only 1,500 euros, despite their market price being considerably higher. Investigators maintain that those involved not only sold these properties at irregular prices, but also deliberately concealed the information to prevent other legitimate buyers from accessing them.
Shell companies and fraudulent billing
To execute their plan, the detainees created companies in the name of close relatives, through which they simulated offering services to the bankrupt company. In return, they issued invoices that allowed the money to return to the network, which then used it to acquire properties, assets and credits from the company in bankruptcy itself. In these fraudulent processes, the company suffered a double loss: they kept the assets and also used the funds destined to pay off debts to pay for these irregular purchases.
Arrests and searches
Throughout the investigation, the National Police arrested seven people, including the company's former head of accounting, several relatives of those involved, a regular supplier of the company and his partner. During the searches carried out in several locations in the province of Málaga, more than 400,000 euros in cash, jewelry worth 350,000 euros and a luxury car were seized. In addition, bank accounts with approximately 2.5 million euros were blocked and the sale of 173 properties and 13 vehicles, whose total value is estimated at 143 million euros, was prohibited.
The impact on creditors
According to the bankruptcy administrator's report, the bankrupt company had assets of approximately 200 million euros. However, at the conclusion of the liquidation process, the resources available were not sufficient to satisfy the debts of the creditors. The investigation concluded that the assets were diverted by members of the criminal network, which left creditors without the possibility of recovering their money.
The operation carried out by the National Police uncovers a scheme of financial corruption that, through illegal and fraudulent practices, allowed the detainees to appropriate millions of euros in properties and assets. The investigation is ongoing, and authorities have promised to take action to ensure that those involved face justice for the crimes committed. Meanwhile, the company's creditors continue to fight to recover their losses amid this economic scandal.