Much of the €20m handed over to investment fund PalmInvest appears to have been spent on luxury cars including brand new Bentleys and Porsches, the Telegraaf reported on Tuesday.
On Monday, five people were arrested in connection with a major fraud centred on PalmInvest, which claims to invest in Dubai property.
Despite receiving tens of millions of euros, only a proportion of the money appeared to have been invested in Dubai, the public prosecution department said.
Those arrested include the fund’s founders Remco V and Danny K, former director Bart D and new director Remy B. The identity of the fifth person is still unknown.
Some 90 officials took part in the investigation, which involved raids on eight offices and five private homes in the Netherlands and Monaco.
The Telegraaf says the investigation into PalmInvest began last year after a property lawyer representing investors who felt they had been conned and the financial services watchdog AFM alerted the police.
Associates had also commented on the men’s big spending habits, the paper says.
On Tuesday, the PalmInvest website (www.palminvest.nl) was still inviting investors to put money into Dubai’s palm island projects for a return of 9% and with their initial investment guaranteed.
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