The General Directorate of Police and the Civil Guard has informed that a fraud in mortgage applications amounting to 10 million euro has been uncovered by the national police and four people have been arrested for being involved in it.

As per initial reports on the investigation process, a 45,000 square meter estate in north-west Madrid, which did not exist, was used by the four accused as collateral. They used forged papers and deeds issued by expert agents from the real estate field to carry out the fraud and make request for mortgage loans.

The loans had been divided into four parts which were 0.5 million, 1.4 million, 2.4 million and 5.7 million euro respectively, and the applications for the loans had been put forward in various credit institutions. All these requests for loans were made on the support of a fictional 45,000 square meter estate in Aravaca, north-west Madrid.

Investigators had come to know of the plan of the accused, and launched an operation to arrest them. The accused were arrested and a high-end vehicle was also seized from them, when they were returning after meeting a prospective lender. The investigating officers have also managed to get their hands on a lot of documents which were used to carry out the scam.