Spanish mortgage fraud group busted
50 mostly Britons have been arrested by the Spanish Guardia Civil in mainland Spain and the Canary Islands. They were arrested on charges of fraud and document falsification and it is thought that more than 25 banks in Spain have been defrauded of up to 60 million €uros by the group.
The false documents were being used to apply for mortgages from the banks as well as other types of credit and were supplied to them by an international group which operates over the internet via several different websites.
Operation “Rocco” has been an ongoing investigation into mortgage fraud and the supply of false personal documents since 2007 when the first arrests were made. two more arrests were made in November 2008. Two Brits, Anthony Kearney and Donna McCafferty, were living in Alicante when they were arrested after a Crimestoppers campaign.
The Guardia Civil stated that the group had been very well organised, running several “virtual offices” in many different international jurisdictions. they had a large database associates and clients whom they had supplied the documents to.
Spanish Banks have been coming down hard on mortgage fraud in recent years after several incidents in the mainland led one bank – Caja Mediterraneo (Cam bank) a high profile victim when in 2007 a mortgage broker on the Costa Blanca was arrested and Cam Bank temporarily withdrew all non-resident mortgage products from the market.
Unfortunately, unwitting clients were (and still are) being talked into the practice by unscrupulous brokers and estate agents. They risk not only arrest in Spain but also the seizing of their property. It is now highly recommended to seek the services of a highly professional mortgage broker who can guide you through the process such as TenerifeMortgageBroker.com rather than risking the conflict of interest that occurs when your estate agent offers to help.
Whilst many British buyers can be convinced that it is still “normal practice” in Spain, they must be aware of the huge risks involved and good advise would be to steer clear of any broker who suggests anything untoward and any estate agents who offer to “introduce you to a bank” or “do the legal work”.
Buyers are being urged to employ the services of an independent lawyer and a professional Spanish mortgage broker who are more than worth the cost give the risks involved in such transactions. Both can usually save you a lot of money and hassle with the added benefit of professional indemnity insurance should things go wrong.
To receive updates of new stories published on TenerifeNews.net, add your email below.
Leave a comment below:
