Irish property investors could be hit by Spanish money laundering probe

IRISH people buying a dream home in the sun could find their overseas properties seized in Spain’s biggest money laundering investigation.

Lawyers from the Marbella-based Del Valle Abogados firm are at the centre of the inquiry into an estimated €600 million fraud that has seen 251 properties, including two entire housing developments, confiscated in a series of police raids in the Costa del Sol.

A total of 41 people - including Chilean-born Fernando del Valle, owner of Del Valle - have been arrested and luxury goods, more than 40 cars, planes and a yacht seized by Spanish police. The Del Valle office has reopened although Mr del Valle is still in jail, pending trial.

According to Ignacio Morillas of British-based Nockolds Solicitors, who is not connected with the case, Irish investors could be particularly vulnerable.

“The main focus of the money laundering investigation centres on two developers in Cadiz and another in Malaga. These are areas favoured by many Irish people looking for homes in the sun.

“Any Irish investor who has put a deposit on a property belonging to any of those developers could have that money frozen for a very long time. They would have to litigate to show that they are not involved and that could take years.”

Fernando del Valle was arrested on March 10. Prosecutors allege the firm has been helping foreign drug dealers launder money through property development in the south of Spain.

Many buyers he dealt with, however, are innocent foreigners who now find themselves embroiled in a huge legal wrangle.

“Many buyers are referred to a particular law firm by estate agents. They should never do this but should receive fully independent advice,” said Mr Morillas, who has a number of Irish clients.

One Irish woman referred to Mr del Valle by her Spanish-based estate agent lost €120,000 after paying €294,000 for two properties which she later found had been bought in the estate agent’s name for far less.

Alvaro Blasco, a solicitor with the Dublin law firm Clifford Sullivan, said they had dealt with Mr del Valle on behalf of clients but their suspicions were quickly aroused. “We were acting for a client who was buying an expensive apartment in Marbella. The legal documentation was not in order. We could not understand Mr del Valle’s approach and advised our client not to proceed.”

Mr del Valle has been charged with money laundering, lying and tax evasion. His lawyer, Javier Nunez, said the Del Valle firm could not be held responsible for bogus transactions.

Anyone who had dealings with the Del Valle firm or feel they may be affected by these events is asked to contact [e-mail] or [e-mail] or telephone [phone].