International Operation Cracks Down on Multimillion-Euro Cannabis Scam
In a sweeping international crackdown, Spanish authorities, in collaboration with Europol and law enforcement from several countries, have apprehended a gang accused of orchestrating a massive fraud scheme. The operation, which spanned 35 countries, allegedly swindled victims out of 645 million euros ($686.41 million) through investments in medicinal cannabis plants.
The sophisticated scam involved a well-orchestrated marketing system, with the perpetrators attending international cannabis fairs to lure investors from Spain, France, Germany, and beyond. According to the Spanish National Police, the gang promised exorbitant profits ranging from 70% to 168% annually, depending on the cannabis species invested in.
Police spokeswoman Silvia Garrido detailed the gang’s business model, which relied on investor capital to form partnerships purportedly aimed at financing cannabis cultivation. However, the reality was far from the rosy picture painted by the gang’s representatives.
To add a veneer of legitimacy to their scheme, the gang showcased luxury cars, threw lavish hotel parties, and produced music videos. They even went so far as to show potential victims legal cannabis plantations that were complicit in the scam.
The operation saw nine suspects detained across Spain, the United Kingdom, Germany, Latvia, Poland, Italy, and the Dominican Republic. While their identities remain undisclosed, the reach of the operation underscores the transnational nature of the fraud.
In a series of raids conducted in 2022, authorities seized assets and blocked bank accounts linked to the scheme. A total of 58,600 euros and 116,300 euros in cryptocurrencies were frozen, and 106,000 euros in cash were recovered. Additionally, properties valued at a staggering 2.6 billion euros were taken into custody.
While the police have not yet revealed if charges have been brought against any suspects, the substantial financial recovery and property seizures mark a significant blow to the illicit operation. The collaborative effort between multiple countries highlights the global commitment to combating fraud and protecting investors from such deceptive practices.
