National Police Uncover Ponzi–Style Fraud Network in Las Palmas
Authorities in Las Palmas de Gran Canaria have dismantled a multi‑layer fraud scheme led by a 43‑year‑old man with a prior police record and a 63‑year‑old woman who acted as the principal accomplice. The pair allegedly lured around forty investors with promises of safe, high‑yield returns. The operation involved an investment plan that paid earlier participants with funds provided by new victims, a classic hallmark of a Ponzi scheme. Some of the proceeds were described by prosecutors as being diverted to finance a lifestyle marked by luxury purchases and private investments.
Complaints about the scheme began to surface last August, when the police received reports alleging a coordinated effort tied to a 43‑year‑old individual who pledged cryptocurrency investments through an aggressively marketed, highly profitable strategy. The initial wave of inquiries set in motion a broader investigation to identify those responsible and to map the flow of money from savers to the suspects.
As investigators traced the case, the real identity of the organizers emerged and it became clear that forty victims had entrusted their savings to the defendants under the promise of quick profits and rapid returns. In these pages the pattern becomes evident: victims are drawn by the prospect of fast gains, only to see their money used to pay earlier investors rather than to generate legitimate profits.
Understanding the Ponzi Mechanism
What is happening here is a classic Ponzi scheme, a form of pyramid structure where money from new entrants funds the withdrawals and gains of those who joined earlier. There is no real underlying profitability or sustainable business activity producing the returns claimed by the organizers. Instead, the system relies on a continuing influx of new money to keep the facade alive.
The operation reportedly relied on two associates to lend credibility to the fraud, creating the impression that a robust network and credible trading activity underpinned the investments. In an attempt to strengthen the deception, the suspects are said to have orchestrated the purchase of more than 100 modern computer systems and established three cryptocurrency mining facilities. These facilities were reportedly located in Tamaraceite and El Sebadal, with a further center on the island of Fuerteventura. The money invested by victims largely appears to have been diverted to those implicated in the case, financing an extravagant lifestyle and ongoing investments.
Police investigators quantified the scale of the scheme by tracing roughly half a million euros committed to the system, with about 320,000 euros of that amount reportedly spent by the suspects themselves. The operation culminated in the arrest of the 43‑year‑old man and the indictment of the 63‑year‑old woman on charges of fraud, embezzlement, and money laundering, according to current case records.
At the time of reporting, the case remains under the direction of Court No. 5 in Palm, and the investigation continues. Authorities cautioned that additional arrests or actions could follow as the inquiry progresses.
Experts emphasize that victims should verify investment promises that sound unusually profitable and check the credibility of any trading platform through independent channels. They advise looking for clear, real‑world assets backing returns, transparent fee structures, and a verifiable record of profits. In suspected Ponzi cases, red flags include guaranteed high returns with little to no risk, pressure to reinvest earnings, and complex explanations about how profits are generated.
Law enforcement officials remind the public that any investment proposal that is not backed by a legitimate business activity should be treated with skepticism. They urge potential investors to perform due diligence, consult regulatory databases, and seek independent financial advice before committing funds. This case serves as a cautionary example of how easily a fraud can be dressed up as a sophisticated investment opportunity, especially when it involves new technologies such as cryptocurrencies and mining operations.
In the ongoing proceedings, prosecutors and investigators will continue to pursue every lead, pursue asset tracing, and work toward recovering losses for the affected victims. The public is reminded to stay informed about the progress of the investigation and to report suspicious investment schemes to local authorities. [Citation: National Police]