DCSIMG

International blitz against boiler-room fraud gangs

Officers remove a suspect after raiding a property in Spain. Picture: PA

Officers remove a suspect after raiding a property in Spain. Picture: PA

  • by MARGARET DAVIS
 

Criminal kingpins who robbed British victims of millions of pounds in savings to spend on their playboy lifestyles have been targeted in an unprecedented international crackdown.

UK police officers joined Spanish counterparts from the Policia Nacional in a series of raids in Barcelona, Madrid, Marbella and London this week, in one of the biggest anti-fraud operations ever staged.

Details of the crackdown, which also saw arrests in the US and Serbia, can now be reported after a reporting ban was lifted by a Spanish judge.

A total of 110 alleged fraudsters were held as police moved to stamp out so-called boiler-room fraud, where investors are duped into buying worthless or non-existent shares.

Investigators targeted a number of organised crime gangs, aiming to take out the top levels of the networks as well as dozens of the conmen who work for them.

Officers likened their lifestyles to the excesses portrayed by Leonardo DiCaprio in The Wolf of Wall Street, spending the stolen money on sports cars, designer watches, drugs and prostitutes.

One of the suspects was believed to be paying £40,000 per month just to rent an apartment. An Aston Martin and Ferrari were among the cars seized by police, along with various watches and £500,000 in cash.

Speaking near the site of one of the searches in Barcelona on Tuesday, City of London Police commander Steve Head, said: “What we’ve seen today is the culmination of a two-year investigation that has been worldwide in its nature. What we’ve seen is an unprecedented level of co-operation.

“We expect this network alone to have upwards of 1,000 victims. We’ve seen millions of pounds taken from people. You see real victims in real communities whose lives have been devastated. Savings that they thought they could rely on in their old age have gone in a heartbeat.”

In total, the international team executed 35 warrants on offices used to run the fraud, and the criminals’ lavish homes.

So far, 850 UK victims of the gangs have been identified, mainly pensioners, who have lost a total of around £15 million – ranging from around £2,000 up to £500,000 per person.

But police believe that this is “the tip of the iceberg” and there are thousands of people who have been duped.

One of the victims took their own life after being defrauded.

Mr Head added: “These people have no conscience in terms of what they do to people’s lives. This is not at all a victimless crime.

“We have dismantled an international network of fraudsters. Make no mistake, this will make a difference to the ability of fraudsters to operate at this level.

“This network has been dismantled. Hopefully we have sent a message to those who think that it’s an easy crime that it doesn’t matter where you are, we will come after you.”

As well as the investment scams, the gangs are involved in drug dealing, money laundering and gun crime.

City of London Police has spent two years looking at the top levels of the fraud gangs, including lawyers and financiers. Most of the suspects targeted were British, and a core group were expected to be extradited to the UK to face trial.

 
 
 

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