A 67-year-old German national was arrested in Tenerife in a joint operation by Spanish and German police. The man is suspected of orchestrating a massive financial fraud that targeted hundreds of investors from Germany. According to preliminary reports, the total damage exceeds 21 million euros.
The detainee previously headed several companies involved in planning and selling real estate projects. Through his firm, he offered individuals the chance to invest in the construction of a hotel, a conference center, and a parking lot in the German city of Konstanz. Investment contracts promised high returns and guaranteed security to attract funds.
Fraud Scheme
In 2018, the Swiss financial regulator banned the company’s operations on suspicion of illegal banking activities. Accounts were frozen and projects halted. Nevertheless, the suspect continued to collect funds, forging documents and promising investors steady profits.
Investigators determined that after the accounts were blocked, he managed to raise more than six million euros using fake contracts. The money was partly withdrawn for personal use, while some was spent to maintain the appearance of a thriving business.
Canary Islands Operation
When it became clear that this was an international criminal scheme, German police sought assistance from their Spanish counterparts. The authorities turned their attention to a luxury villa in southern Tenerife, valued at two million euros. It was there that the suspected mastermind of the scam was hiding with his companion.
During the search, police seized documents, electronic devices, and a large sum of cash. Additionally, Spanish authorities froze bank accounts linked to the suspect to prevent further movement of funds.
The scale of the damage
According to investigators, over seven years, the man carried out at least 748 illegal operations related to accepting deposits without a license. The total loss for investors amounted to at least 21 million euros. He also faces charges of stealing another five million as part of a criminal group and forging documents.
The investigation is ongoing, and the detainee is awaiting a court decision at the location where most offenses were committed. In the near future, he will face several charges under German criminal law.
