Up to 15,000 UK property investors could have been caught out by a £12m timeshare scam operation uncovered by Spanish police.

Four Britons are among eight suspects arrested for their part in the alleged fraud, which is said to have been operating on the Costa del Sol for five years. The arrests were made in Fuengirola, Mijas and Coín.

Operating under a host of different names, one aspect of the fraud, according to the police, involved sale of non-existent timeshare properties. Another involved offers to buy timeshare entitlements from their owners. When purchases were agreed owners where asked to forward payments for administrative and legal costs. The money was banked but the purchases did not go ahead.

Police believe gang members started their alleged fraud in 2000 after moving from Tenerife. Since then they have channelled their operations through as many as 300 front companies housed in rented accommodation, employing up to 1,000 telesales people to canvas investors.

Those duped by the scams last just over £1,000 on average. Some people were apparently caught a second time when they turned to another of the gang’s front companies which offered to help them recover the money they had lost.

Besides the four Britons, South African Willenm Prinsloo, said to have headed the operation, and his Norwegian wife have been arrested, along with a Belgian. Police confirmed Prinsloo had been arrested in a similar case three years ago.


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