A recent report from the Guardia Civil has found that the Madeira Invest Club, under the leadership of Álvaro Romillo, operated as a Ponzi scheme, defrauding over thirty thousand investors. This scheme has allegedly raised more than two hundred sixty million euros, with promised returns reaching three hundred twenty percent. The report indicates that the losses faced by victims may surpass eleven million euros.

Judicial authorities have initiated an investigation into various criminal activities, including aggravated fraud and money laundering. Evidence suggests that the club paid earlier investors with the funds from new investors, while falsely promising high returns through extravagant claims about investments in luxury items such as watches and properties.

The report delineates several investment schemes marketed by Madeira Invest Club, including investments in luxury watches, real estate, and precious metals, all advertised with extravagant returns. However, investigations reveal a lack of genuine business activity to support these claims, raising serious doubts about the legitimacy of the operations.

The organisers are being scrutinized for fiscal crimes as authorities have requested assistance from the tax department to explore any potential tax evasion. With implications affecting thousands, this case underscores the risks associated with fraudulent financial schemes.