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Title: Trial for €17.3 Million Scam in La Manga del Mar MenorTitle

Juicio sobre estafa de 17,3 millones de euros en La Manga del Mar Menor

A trial of great importance is about to begin in the Fifth Section of the Provincial Court, located in Cartagena. The case involves six individuals accused of defrauding €17.3 million from British citizens in real estate operations in La Manga del Mar Menor in 2005 and 2006.

According to the investigations, two bank executives from a branch in La Manga granted 327 mortgage loans and 78 personal loans to multiple individuals from the United Kingdom to acquire properties in this coastal area. Another defendant, the owner of a commercial company, supplied the properties for sale, most of which came from real estate developers. In addition, two other people provided the majority of the buyers, all residents of Plymouth, in southwest England. Furthermore, one of the defendants, acting as a lawyer, acted as a representative for the buyers in the financing operations.

The Public Prosecutor’s Office requests a prison sentence of 5 years and the payment of a daily fine of €12 for 10 months for each defendant, as well as the reimbursement of the defrauded money and corresponding legal interests. The accused individuals used a financial product known as the “Assured Mortgage,” intended solely for financing primary residences, but the necessary studies to ensure the solvency of the recipients were not conducted.

The total amount of the granted mortgage loans was significantly higher than the actual value of the acquired properties, resulting in an excess of €17.3 million. This money was not used in the sale transactions or given to the borrowers; instead, the accused individuals used it to enrich themselves unlawfully.

The bank cancelled most of the operations, forgiving the borrowers both the principal and interest of the loans in exchange for receiving the properties as payment.

This case highlights the importance of conducting rigorous and thorough due diligence in real estate transactions, as well as the need to ensure the solvency of buyers to prevent cases of fraud like this one.

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