The Guardia Civil has apprehended four individuals in Elche under Operation ‘Uncover’ for allegedly defrauding over one million euros in public subsidies intended to promote employment. The subsidies, which were co-funded by the Generalitat Valenciana and the European Social Fund, were reportedly misdirected towards personal expenditures, including the purchase of high-end vehicles. Additionally, two more individuals are currently being investigated.

The operation followed a complaint lodged by LABORA, the Valencian Employment and Training Service, which alerted authorities to potential irregularities in how subsidies were managed by eleven companies based in Elche. These companies were meant to use public funds to hire qualified youth and vulnerable individuals, but investigators uncovered fictitious employment contracts and misappropriation of funds.

The Guardia Civil’s Urban and Economic Crimes Team spent nearly a year examining financial transactions related to the suspects, revealing numerous transfers between accounts associated with the individuals involved. Instead of creating stable jobs, the funds were diverted for personal use, contradicting the intended purpose of the subsidies.

In April, authorities executed searches at a private residence and offices within Elche’s technology park, linked to the alleged mastermind of the operation. During their intervention, they seized over nine thousand euros in cash, documentation, a luxury vehicle, and froze several bank accounts and properties. The arrested individuals were released after questioning, with precautionary measures imposed on the alleged leader of the criminal group, who faces numerous charges, including subsidy fraud and money laundering.