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Scam gives retirees pensions of 391 euros rather than 21.78! 

Police in Spain have arrested 56 people for defrauding more than two million euros from Social Security.

The scam was centred on Valencia and involved a network of fictitious compa-nies which managed to get pensions of 391.35 euros for some of their “clients” when all they were really entitled to was 21.78.

Investigators say as many as 25 bogus businesses were set up to defraud a total 2,143,239.93 euros.

Of the 1,211 workers investigated, 81 had received almost half a million euros in benefits.

The investigations began at the beginning of this year when an important number of companies suspected of defrauding the Social Security in the Autonomous Community of Valencia were detected.

These companies were used to simulate legal busi-ness and recruitment of alleged workers who, in exchange for different amounts of money, registered in the Security Social. The “em-ployees” themselves did nothing.

Of those investigated but not arrested are two businessmen who are interned in the prison of Valencia and another who lives in France.

Among the companies investigated there are several formed by personnel of Ukrai-nian, Bulgarian and Russian nationality.

“In spite of paying the social security contributions, the amounts received for the benefits received were much higher than the expense originated, since they reques-ted unemployment benefits, subsidies, maternity, pa-ternity, temporary disa-bility, retirement pensions, etc,” said a police spokes-man.

“Regarding the retire-ment pension, there were people who – taking advantage of the interna-tional bilateral agree-ments – became the holders of a pension of 391.35 euros with annual revaluation when in reality they would have received one for a value of 21.78 euros. This increase was due to the fact that they contributed the report on their country’s working life and also justified one year’s registration as workers in a company based in Spain -which have subsequently been declared fictitious. In addition, they returned to their country of origin, so they could not be located in Spain.”