- The suspects created real employment contracts that were not maintained in order to obtain public funds aimed at promoting permanent hiring.
- Public subsidies, initially funded by the Generalitat Valenciana, were diverted to personal expenses and luxury vehicle purchases.
May 8, 2025 – The Guardia Civil, as part of Operation “Uncover,” has dismantled a business network accused of defrauding more than one million euros in public employment subsidies co-financed by the Generalitat Valenciana and the European Social Fund. So far, four individuals have been arrested and two others are under investigation.
The case began following a complaint filed by LABORA, the Valencian Employment and Training Service, with the Anti-Corruption Prosecutor’s Office, citing potential irregularities in public aid granted to eleven companies based in Elche.
Structured Fraud Through Fictitious Hiring
The companies under investigation applied for subsidies intended to promote permanent employment of qualified young people and individuals in vulnerable situations. While employment contracts were initially formalized, in most cases they did not meet the legal requirements. Many employees were dismissed shortly afterward, resigned voluntarily, or the companies ceased operations.
Over the course of nearly a year, the Urban and Economic Crimes Team of the Guardia Civil’s Judicial Police Unit in Alicante traced the flow of the funds and discovered that a substantial portion was redirected to personal spending and inter-account transfers among those involved. Some of the money was used to purchase high-end vehicles and for purposes unrelated to the intended use of the subsidies.
Raids on Homes and Offices
In April, authorities carried out searches at a private residence in Elche — believed to be the home of the group’s ringleader — as well as in active office premises located in the local technology park. During the operation, they seized over €9,000 in cash, a luxury vehicle, and a range of relevant documents. In addition, bank accounts and assets were frozen.
The four detainees were brought before the court and later released under precautionary measures, including restrictions placed on the alleged leader.
All individuals involved are facing charges of subsidy fraud, fraud, membership in a criminal organization, obstruction of justice, and money laundering.
Institutional Cooperation in Anti-Fraud Efforts
The investigation has been conducted under the direction of the Anti-Corruption and Organized Crime Prosecutor’s Office of Alicante, in collaboration with LABORA.
