The National Police have arrested seven people in Tenerife as the alleged perpetrators of crimes against the Public Treasury and Social Security, for setting up a “ghost company” that managed to defraud €74,000 from Social Security through the collection of unemployment benefits for its non-existent employees.
Following reports from various public administration bodies, National Police investigators became aware of the possible existence of a street vending company whose actual purpose could be to defraud Social Security.
With the collaboration of the Public State Employment Service and the Labour Inspection in Santa Cruz, agents were able to determine the existence of this company registered under the name of a Hungarian citizen. This person, in collusion with other compatriots, ‘hired’ supposed workers to subsequently profit from the unemployment benefits that might be due to them after their dismissal.
Once sufficient evidence was gathered, the national police proceeded to arrest seven individuals, all Hungarians, including the main suspect and took them into police custody. All of them are now banned from leaving the Schengen Area and will face trial for the accusations.
