28 years in prison for the main defendants in the Luxury House real estate scam

PalmThe main defendants in the Luxury Casa real estate fraud case were sentenced to a combined total of almost 28 years in prison. The Second Section of the Provincial Court handed down a sentence of 14 years and nine months. Carlos García Roldán, known as Charlyand considered the ringleader for the crimes of aggravated fraud, membership in a criminal organization, fraudulent insolvency, and money laundering. His partner, Michelle Pilato, was also sentenced to nine years in prison for aggravated fraud, membership in a criminal organization, and money laundering, and the alleged builder received a four-year sentence for membership in a criminal organization and as an accomplice in the crimes. The court acquitted three other defendants.

The real estate developer behind the luxury property Casa, who defrauded more than 3 million euros in Mallorca, is being prosecuted.

The ruling concludes that Lujo Casa was not the registered owner of the advertised plots of land and, in some cases, only held purchase option agreements that were sometimes not exercised; it had not obtained building permits, as only basic plans existed for some developments; it had not obtained bank guarantees or surety bonds to secure the advance payments; and it had not opened or deposited the advance payments into separate bank accounts. The massive real estate scam resulted in approximately €3.3 million being defrauded from more than 230 victims across some thirty unbuilt real estate developments. "The buyers, trusting in the appearance of solvency and professionalism created by the establishment of offices open to the public, advertising on real estate portals, signs on vacant lots, and contractual documentation, paid amounts on account of the price through transfers, cash deposits, and other means of payment, in individual amounts ranging from €0 to €0,000. The total amount of all these payments exceeded €3.3 million," the court stated.