Hradec Kralove, East Bohemia, July 23 (CTK) The Czech police arrested five men on suspicion of fraudulent deals with real estate in Spain, causing damage of 35 million crowns, Iva Knolova, spokeswoman for the police squad for uncovering organised crime, told CTK yesterday.
If found guilty the suspects face up to 12 years in prison for fraud and blackmailing.
The police did not rule out that the number of accused as well as the damage level might increase.
Detectives have worked on the case since 2014. They revealed criminal activities of the group dating back to 2012.
The gang members, aged 26-52 years, offered a high appreciation of money in the form of allegedly advantageous investments in Spanish real estate that faced insolvency proceedings to well-off people.
Then the gang informed the potential investors about the transactions they allegedly carried out and asked them for more finances to cover the costs.
According to the police, the damaged parties lost millions of crowns. They were forced to make further investments to cover the fictitious expenses.
If the deceived clients claimed back their money, the accused were intimidating and blackmailing them. They threatened them with criminal prosecution, saying they had also been entangled in the fraudulent deals. The gang thereby secured their confidentiality and further money, the police say.
Three of the five accused have been taken into custody.
The Czech police are investigating the case in cooperation with foreign partners since another two suspects stay abroad now, Knolova said.
($1=24.827 crowns)
If found guilty the suspects face up to 12 years in prison for fraud and blackmailing.
The police did not rule out that the number of accused as well as the damage level might increase.
Detectives have worked on the case since 2014. They revealed criminal activities of the group dating back to 2012.
The gang members, aged 26-52 years, offered a high appreciation of money in the form of allegedly advantageous investments in Spanish real estate that faced insolvency proceedings to well-off people.
Then the gang informed the potential investors about the transactions they allegedly carried out and asked them for more finances to cover the costs.
According to the police, the damaged parties lost millions of crowns. They were forced to make further investments to cover the fictitious expenses.
If the deceived clients claimed back their money, the accused were intimidating and blackmailing them. They threatened them with criminal prosecution, saying they had also been entangled in the fraudulent deals. The gang thereby secured their confidentiality and further money, the police say.
Three of the five accused have been taken into custody.
The Czech police are investigating the case in cooperation with foreign partners since another two suspects stay abroad now, Knolova said.
($1=24.827 crowns)
