The National Police has concluded a complex financial and asset investigation that has culminated in the judicial indictment of four directors of centers for foreign minors in Gran Canaria and Lanzarote, as well as a real estate businessman and the foundation in charge of managing said centers.
The investigations, carried out by the Economic and Fiscal Crime Unit (UDEF) of the Canary Islands Police Headquarters, began in 2022 after receiving a report from the Executive Service of the Commission for the Prevention of Money Laundering and Monetary Offences (SEPBLAC), which reports to the Bank of Spain.
This report warned of a multitude of unjustified and strange banking operations linked to those in charge of several reception centers for unaccompanied foreign minors.
The case was presented to the Special Prosecutor's Office against Corruption and Organized Crime of Las Palmas, which opened Investigation Proceedings and authorized the start of operation "TABAIBA", an exhaustive economic-patrimonial investigation that has lasted for three years.
Subsequently, the Court of Instruction number 7 of Las Palmas de Gran Canaria took over the instruction of the proceedings, which today continue under the direction of the European Public Prosecutor's Office.
More than a million euros withdrawn in cash and personal expenses charged to the centers' accounts
The analysis of thousands of bank records and accounting documents revealed that the investigated parties diverted part of the European "Next Generation" funds transferred through the Government of the Canary Islands and the Cabildo of Lanzarote, destined for the maintenance and operation of the centers, for their own economic benefit.
Of a total of more than 1,600,000 euros received by the foundation, more than 1,100,000 euros were withdrawn in cash through split withdrawals, direct transfers of more than 25,000 euros were detected to private accounts, and personal expenses were charged to the accounts of the centers, such as cosmetic surgery, vacations, gasoline, or meals in restaurants.
These practices were detected after the bank accounts were cancelled by the financial institution, in application of Law 10/2010 on the Prevention of Money Laundering.
Allegedly falsified invoicing and collusion of the foundation
Subsequently, and at the request of the court, the foundation handed over thousands of accounting documents with which it attempted to justify the operations. However, the police analysis detected duplicate or triplicate billing, undated documents, unidentified services, and invoices unrelated to the centers, which revealed an alleged accounting manipulation to conceal the misappropriation of funds.
Therefore, the investigators requested a financial and accounting audit to accurately determine the total amount embezzled.
A real estate businessman implicated in rental overpricing valued at more than 1.3 million euros
During the investigation, a network of inflated rents was also discovered in the properties housing the juvenile centers. The businessman who owned the properties, in collusion with the foundation, used shell companies to rent the centers at prices that doubled or tripled the market value, with a surcharge that exceeded 1,300,000 euros between 2021 and 2023.
The funds were diverted to other accounts and real estate operations, evidencing money laundering practices, with transformations and placement of the illicit money in patrimonial assets.
Five defendants and a foundation under investigation
As a result, the European Public Prosecutor's Office has charged the four directors of the centers, the real estate businessman, and the foundation involved. All five have no prior police record and are between 31 and 61 years old.
The judicial proceedings remain open, and the final conclusions are expected to determine the exact economic extent of the damage caused to European and public funds.
