The Costa Blanca real estate agency exploited a pyramid scheme to defraud 5 million euros from customers in Spain

LA Guardia Civil has arrested three people and is investigating three others for a massive real estate scam.

The agency, Grupo Lorelai, operated out of an office in the Playa Muchavista area of ​​El Campello.

He pocketed at least 5.4 million euros from 60 clients for luxury homes that were never built or were repeatedly sold.

About 1 million euros have been reimbursed and 12 bank accounts used by the fraudsters have been frozen.

All those arrested or investigated are French nationals who were targeting French-speaking customers.

GUARDIA RAID ON THE OFFICE OF EL CAMPELLO

La Guardia began investigating the company late last year which advertised luxury homes in and around Busot.

Two types of fraud were committed by the agency.

First, an already built property would be sold to multiple buyers.

The second element was to build a house from scratch, but the client never got what he paid for.

The Guardia Civil described the gang’s office in Playa Muchavista as “ostentatious” with staff driving around in high-end cars, all to give wealthy clients the impression that they were dealing with a highly reputable company.

All deposits for houses or fake construction projects were immediately diverted to the real agency team’s personal bank accounts, which then made transfers to foreign accounts.

18 people who theoretically worked on construction projects for the company were located and none of them had a legal employment contract.

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