Investigation Launched into €300 Million Fraud by Madeira Invest Club
The Prosecutors Office has taken significant steps to investigate an alleged fraud exceeding 300 million euros involving the Madeira Invest Club, an investment platform spearheaded by businessman Álvaro Romillo. Notably, Romillo has previously reported MEP Luis Alvise Pérez for claims of illegal financing.
According to the Public Ministry, a detailed report has been submitted to the National Court AN, requesting Judge José Luis Calama of Central Court of Instruction Number 4 to accept three complaints regarding this case. The court's jurisdiction over the matter is deemed appropriate due to the scale and implications of the allegations, which suggest that the platform was involved in helping individuals reduce their tax burdens through dubious means.
The Prosecutors Office has also called for the consolidation of the three complaints, citing that the legal requirements to combine them into a single procedure have been met, and it has requested that the proceedings be conducted under secrecy to protect the integrity of the investigation into the alleged fraud.
The complaints have been lodged by several entities, including the National Association for the Defense of Spanish Consumer Services, the Association of Cryptocurrency Users, and the Association of Affected Investors in Cryptocurrencies. Represented by the law firm Aránguez Abogados, the Association of Cryptocurrency Users claims to defend the interests of over 500 individuals affected by the scheme, which they estimate has caused losses exceeding 300 million euros.
The complaint alleges that Romillo, who operated under the guise of 'CryptoSpain', presented himself as an expert in tax evasion and cryptocurrency investments. He reportedly claimed to have knowledge that could help individuals circumvent taxes, thereby luring them into his scheme. The association has expanded its complaint, urging the National Court to withdraw from the case and transfer jurisdiction to the Supreme Court for an investigation into Alvise Pérez himself. This request stems from allegations that Romillo publicly linked the fraudulent activities of the club to the MEP, thus creating a perceived connection between the two figures.
In a parallel development, another law firm, Zaballos Abogados, representing the Association of Affected Investors in Cryptocurrencies, estimates that the number of individuals scammed exceeds 2,700, with the total fraud amount potentially reaching 600 million euros. Many of these individuals were attracted to a purported financial club that required an annual fee of 2,000 euros to join. This membership fee was used as a bait, to lure potential investors into a web of aggressive marketing strategies and false promises, ultimately leading to investments averaging around 100,000 euros per person.
The unfolding investigation highlights a troubling trend in the cryptocurrency investment space, where unregulated platforms can easily exploit vulnerable investors under the guise of providing expert financial advice. As the case develops, it underscores the urgent need for regulatory oversight in the rapidly evolving world of cryptocurrency and investment platforms to protect consumers from fraudulent schemes.
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