Multi-Million Euro Scam Unravelled

Spanish Fugitive Arrested In Almeria

Under arrest. Credit: Pinholeimaging /

A recent investigation has uncovered fraud on a massive scale, highlighting the lengths that businesses will go to exploit the system.

The National Police published a report on Friday, September 13, in which an investigation in Las Palmas has recently exposed a significant Social Security fraud.

The operation began in May, following a request from the General Treasury of Social Security. They had identified several discrepancies by company administrators, who were evading their financial obligations to Social Security.

Various business owners did not pay their own social insurance or indeed those of their workers, thus increasing their profit margins, not to mention defrauding the General Treasury of Social Security, as well as unfair competition with companies in their own sector.

Devious Business Tactics

Upon examining the assets of these companies, it was evident that there was a deliberate effort to dodge debt payments. These companies were cleverly hiding their profits. They’d start a company, accumulate debts, then shut it down. Then, they’d launch a new company, continuing the cycle to avoid paying what they owed. This allowed them to continue in business and sidestep potential asset seizures.

Notable Cases

Two particular cases stood out during the probe. In both instances, the individuals under scrutiny had previously been found guilty by the Provincial Court of Las Palmas for similar offences. Yet, they persisted in accumulating substantial debts to Social Security, close to a staggering €1 million.

Manipulating The System

Investigators identified a pattern with a network of over eight firms offering auxiliary services. Companies would frequently change their management to avoid legal implications. Likewise, when those running the businesses noticed that the debt of one of their companies was approaching €50,000, they would then cancel it and launch a new one, evidencing a cynical use of the legal requirements, dividing the debt so as not to reach the amount required in the Penal Code.

Conclusion And Arrests

In total, 13 individuals have been implicated in this scandal. Ten have been arrested, while three are under investigation for crimes against Social Security and obstruction of justice. The collective financial harm inflicted on the Social Security Treasury by these schemes is estimated at €1,394,716.

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Written by

John Ensor

Originally from Doncaster, Yorkshire, John now lives in Galicia, Northern Spain with his wife Nina. He is passionate about news, music, cycling and animals.