Latest ‘Mini-Madoff’ Arrested in Spain, Accused of $300 Million Fraud

Offered returns of as much as 10% to 20% monthly, instead used the money to buy real estate

More On Legal & Compliance

from The Advisor's Professional Library
  • Recent Changes in the Regulatory Landscape 2011 marked a major shift in the regulatory environment, as the SEC adopted rules for implementing the Dodd-Frank Act.  Many changes to Investment Advisers Act were authorized by Title IV of the Dodd-Frank Act.  
  • Disaster Recovery Plans and Succession Planning RIAs owe a fiduciary duty to clients to prepare for disasters and other contingencies. If an RIA does not have a disaster recovery plan, clients’ financial well-being may be jeopardized.  RIAs should also engage in succession planning, ensuring a smooth transaction if an owner or principal leaves.   

Spanish police said they arrested a foreign-exchange operator suspected of running a $300 million Ponzi-type fraud that may have affected at least 100,000 investors in Europe, the U.S. and Latin America.

Bloomberg reports the latest "mini-Madoff," a reference to jailed con man Bernard Madoff, offered returns of as much as 10% to 20% monthly for investments in foreign currencies and instead used the money to buy real estate for himself and colleagues, according to a National Police statement today.

The man, German Cardona Soler, is 49 years old and a Spanish citizen, said a police spokeswoman who declined to be named, following agency policy. He was arrested in the Mediterranean city of Valencia. Two more people were apprehended and seven people were accused in relation to the suspected fraud, the statement said.

Accounts in 12 banks have been blocked and the titles frozen for more than 20 properties in Spain, the police said.

Reprints Discuss this story
This is where the comments go.