Tenerife Tax Advisor Jailed for Post-Mortem Property Fraud
A tax advisor in Tenerife was sentenced to three years in prison and ordered to pay nearly €280,500 for defrauding the heirs of an Asturian businessman by abusing a power of attorney, even after the businessman's death, to sell properties without their knowledge.
A court in Santa Cruz de Tenerife has sentenced a man to three years in prison and ordered him to pay almost €280,500 for fraud and misappropriation.
The case involves a power of attorney he used without the knowledge of a businessman from Asturias, even after the businessman had passed away.
The court ruled that the money must be paid to the businessman's heirs. This includes €120,200 from the sale of two properties (originally one) and €74,500 from the fraudulent transfer of another property.
The court also ordered the cancellation of the sale of another property. If this property was bought by someone who didn't know about the fraud, they will have to pay the businessman's children €82,000, plus €2,000 for inheritance tax and another €2,000 as a fine.
The convicted man, who worked as a tax advisor, sold four properties in southern Tenerife without the owner's knowledge. He sold two of them after the owner's death, when the power of attorney was no longer valid.
The businessman, a builder and property developer, lived in Asturias and had been doing business in Tenerife since 1970. He trusted the defendant and put him in charge of his businesses on the island.
He gave the man a power of attorney, which the court said led the defendant to "be carried away by a desire for illegal enrichment."
The man then took the money from the sale of two properties while the businessman was still alive, without his knowledge.
In March 2008, the businessman became ill and remained so until the end of the year. Seeing his condition worsen, the defendant took €120,000 and then another €20,000, keeping the money for himself.
During these transactions, the convicted man claimed to be representing the original owner. Even after the owner's death, he continued to act as if he were still alive, and the notary approved the payments.
The heirs only found out about the sales months later when they were fined for not paying inheritance tax. The fine was initially €47,000, but was later reduced to €18,000 and then to almost €2,000.
The defendant also took ownership of two other properties and sold part of one for €100,000 using the power of attorney and a document with the businessman's name and a stamp.
He did the same with another part of the property for the same price, also paid in cash, and with a forged signature. The notary approved these documents because they were unaware of the death.
The court ordered an expert examination of the signatures, which confirmed the forgery, despite a defense expert reaching a different conclusion.
During the trial, the defendant claimed he believed the power of attorney gave him ownership of the land, not just the right to represent the owner. He argued he didn't think he was doing anything illegal.
The prosecution asked for a four-year prison sentence and the return of €140,000 from the sale of the four properties in Granadilla de Abona to six people.
The private prosecution also requested a four-year prison sentence for fraud, a payment of €400,000, and two years for document forgery, although this charge was dropped.