A 77-year-old man has been arrested in Fuengirola on suspicion of defrauding property buyers by posing as the owner of homes he did not legally control nor own.

The suspect is accused of fraud and document forgery in connection with a real estate scam that saw victims hand over large sums of money as reservation payments for properties.

The investigation was launched by cybercrime police in Fuengirola after a complaint linked to the sale of a flat in which the alleged fraud amounted to €95,000.

Police said they have managed to recover the full amount of the money and return it to the victim, although the investigation remains ongoing and further arrests have not been ruled out.

Fake documents

According to investigators, the suspect used forged documents to present himself as the rightful owner of a property and convince buyers to proceed with a purchase.

The scam involved falsified powers of attorney, identity documents and tax certificates.

Police believe the man received reservation payments through bank cheques before either withdrawing the funds in cash or transferring them through various bank accounts.

The fraud only began to unravel after the buyer had already completed the purchase process.

The victim later discovered the property was occupied illegally and received information suggesting it already had a legitimate owner who was involved in legal proceedings to recover possession.

Suspicious signatures

Investigators uncovered a number of inconsistencies during their enquiries.

One of the key red flags emerged during the property sale itself, which had been carried out using a power of attorney.

Police found that the signatures of the supposed owners did not match those shown on copies of the passports submitted as part of the transaction.

Those discrepancies ultimately led officers to uncover what they describe as a wider fraudulent scheme.

More suspects

Police said the inquiry has since expanded beyond the arrest of the 77-year-old suspect.

Investigators have identified other individuals who may have played a role in the operation and are examining financial transactions linked to several commercial companies.

Officers are continuing to analyse banking movements and corporate connections as they seek to establish the full extent of the alleged fraud.

The Policia Nacional said further arrests remain possible.

Read more Andalucia news at the Spanish Eye.