Spain's Supreme Court Upholds €1M Fraud Conviction Against Three Men in Andorran Insurer Scam

Spain's Supreme Court has upheld the conviction of three men for aggravated fraud after they defrauded Andorran insurer Assegurances Generals (AGA) of €1 million in 2013, confirming three-year prison terms, fines, professional bans, and a joint order to repay the sum.

Administrators overseeing AGA's insolvency are now pursuing recovery of the funds in Andorra and Spain, working with asset recovery specialists despite low expectations of full reimbursement. The €1 million would form part of the insurer's bankruptcy estate, which faces liabilities of around €80 million according to Andorran authorities. The administrators, in place since 2019, have tracked the case amid efforts to reclaim other assets.

The fraud unfolded as AGA sought to buy the insurance arm of bankrupt Spanish firm Cahispa. Banco Popular required a €20 million international guarantee due to AGA's non-EU status and its operations through Andbank. The general director turned to Barcelona auditors UHY, recommended by a former FC Barcelona player, who connected him with Silvana Investment & Business LTD.

In September 2013, the director met UHY consultants and a Silvana representative at their Diagonal Avenue offices. The representative, one of the convicted men, was pitched as the ideal intermediary. October and November brought further meetings with two of the men, who prepared documents but pursued no genuine intermediation, aiming solely for illicit gain with a third man's help via his firm, Spain Global Investment.

On 12 December, AGA and Silvana signed a private deal for a €200 million guarantee, demanding a €1 million advance within three days under penalty. The next day, AGA wired the amount from Andbank to an HSBC account in London under Spain Global Investment, labeling it a policy cancellation. The men supplied fake SWIFT messages and promises of bank cheques.

No dealings occurred with HSBC or any bank. Funds cleared on 18 December; the account holder withdrew €570,000 for personal use, including €16,000 for a car. HSBC froze the account on suspicion of fraud, prompting probes.

AGA complained in 2014, sparking investigations in Andorra, Spain, and the UK with rogatory commissions. Andorra's Batllia handled initial steps before deferring to Spanish courts due to Barcelona jurisdiction clauses. Barcelona's Provincial Court convicted the three of aggravated fraud in 2022, citing the sum's scale, and imposed reduced sentences for delays in the complex case. They were cleared of forgery, misappropriation, and money-laundering charges against one man's partner.

The men appealed, contesting evidence, searches, jurisdiction, delays, and complaint validity. The Supreme Court dismissed all claims this year, validating the facts, procedures, and complexity accounting for the timeline.