Three people have been arrested in connection with an alleged property fraud in Tenerife that left 28 buyers out of pocket by a combined €114,900.
The investigation centred on an estate agency in Santa Cruz de Tenerife, where buyers were allegedly persuaded to pay deposits towards homes and plots of land before the person handling their purchase stopped responding.
The National Police announced the case today (Monday). Officers brought together 20 complaints lodged at different police stations across the island from 2024 onwards, uncovering the scale of the alleged operation.
According to investigators, the agency’s owner used the appearance of a legitimate business to gain buyers’ confidence. Properties and land were advertised both through its premises in Santa Cruz and on its website.
When prospective buyers expressed an interest, they signed purchase agreements and transferred money to reserve the property and pay a deposit under an arras contract.
Police allege that, once the payments had been received, the main suspect cut off contact with the buyers. Investigators say money was then transferred to other people or accounts abroad in an attempt to conceal its origin and make it harder to trace.
Some of those affected lost a substantial part of their savings. Victims set up an online forum to share information and stay in contact as more people discovered they had allegedly been targeted.
The investigation identified four people suspected of involvement: the estate agency’s owner and three others allegedly linked to the movement of the money.
Officers subsequently arrested three suspects, while a fourth person remains under investigation.
Following their appearance before the judicial authorities, the main suspect was remanded in custody pending further proceedings. This is a precautionary measure and does not amount to a conviction.
