Madrid Court Probes Fraud in Andorra Real Estate Scam

A Madrid court is investigating a criminal complaint filed by the main investors in the Arbres del Tarter development in Andorra's Tarter area. The plaintiffs, heirs of the former Madrid-based Repostería Martínez bakery—later acquired by Bimbo—accuse their longtime legal advisors and the project's delegated promoter of fraud, misappropriation, document falsification, and professional disloyalty.

The dispute centres on a 45-unit residential complex with four commercial spaces and 69 parking spots. Investors injected €31.38 million on 23 September 2021 to cover land purchase, construction, and marketing. Project plans projected sales totalling €46.89 million within just over two months, yielding profits exceeding €15.5 million. Under the delegated promotion contract signed two days earlier, the promoter was to deliver €41.26 million by 23 November 2023—26 months later—or face contract termination without fees.

Instead, construction finished a year late in November 2024, and sales stalled. As of early 2024, only 20 apartments and the four commercial units had sold, leaving 25 apartments unsold. The complaint alleges the three Madrid lawyers, who charged monthly fees plus 0.5% of investments, secretly partnered with the promoter—a former military officer with an Andorran company—through their own firms. They allegedly profited as hidden beneficiaries while steering clients into the deal, part of three real estate ventures (one in Marbella, two in Tarter) backed by roughly €50 million overall.

The investors claim the lawyers pushed questionable solutions after deadlines passed, including a proposed split of remaining units via payment in kind—14 apartments to the promoter (valued at €20.19 million) and 10 to investors—despite the promoter's failure to meet targets. The lawyers reportedly withdrew from joint companies amid the fallout and ceased advising the family in April.

The complaint, admitted by Madrid's Investigating Court No. 52 at Plaza de Castilla, seeks to halt parallel civil actions in Andorra, where the promoter has sued over disputed sales preventing some buyers from formalising deeds. Authorities have yet to rule on the allegations.