In a coordinated effort, the National Police, the Social Security General Treasury, and other authorities reported the arrest of 52 individuals across several provinces—Albacete (41), Alicante (2), Madrid (4), Malaga (1), Murcia (1), and Valencia (3)—on charges linked to the illicit collection of public benefits. One detainee is a lawyer who, in collaboration with others, allegedly helped create fictitious companies with no real operations to facilitate unemployment benefit collection for workers. Police estimates place the total defrauded from SEPE and INSS at over 300,000 euros, with authorities noting a broader fraud involving roughly 12 million euros against the Treasury identified by the Albacete Tax Office. The information was released on Monday by police sources. (Source attribution: National Police)
Earlier reports indicated irregular actions by a police officer connected to a company operating in Albacete, aimed at evading Social Security obligations. The company, described as engaged in wholesale trade of machinery, equipment, and agricultural materials, appeared to have no actual commercial activity and was primarily a residence, according to the cadastre’s electronic records. Statements gathered by investigators suggested that workers listed as employees of the non-operating company had not worked there and had paid bribes to secure SSI contributions. (Source attribution: General Treasury of Social Security)
Investigators later identified an individual who appeared on the list alongside his spouse, noting that dozens of executives from around 30 companies, many of which operate in the wholesale sector in Albacete, Alicante, Cuenca, and Valencia, were connected. A common link emerged: the same Albacete-based lawyer acted as a facilitator authorized to carry out procedures before Social Security (RED authorization). The attorney reportedly had prior police records for benefits fraud and document forgery, while the alleged manager carried additional police reports for fraud and forgery. (Source attribution: National Police)
The investigation highlighted a pattern of non-operating entities and front men who helped enroll workers in Social Security to receive unemployment benefits. These front men, sometimes family members, were involved in diverting benefits to those who did not genuinely work for the listed companies. The RED-authorized offices in Albacete operated with the cooperation of third parties to create shell companies, enroll workers, and siphon unemployment benefits. (Source attribution: National Police)
The probe revealed that many of the RED-managed firms were fictitious, while others registered workers irregularly at legitimate operating companies. An organized operation followed, resulting in the arrest of 52 individuals for fraud related to unemployment benefits. The lawyer was also accused of involvement in a criminal organization, allegedly helping to build a network of enterprises and fronts to defraud the State Public Employment Agency. (Source attribution: General Treasury of Social Security)
Police authorities confirmed that the financial damage to SEPE and INSS exceeded 304,094 euros. They noted that the figure could rise further if additional fictitious companies were discovered and their registrations canceled ex officio to prevent ongoing fraud. The case underscores how a network of professionals and front companies can exploit public employment programs, prompting calls for vigilant oversight and stronger safeguards. (Source attribution: National Police)