Keys to the "massive scam" of Paco "el Bueno," the investor who deceived hundreds of residents and earned millions of euros.

Paco 'the Good' seems to have actually been bad, very bad. A con man. That's what we should think of Francisco Gutiérrez Ortega, who allegedly abused the trust and savings of more than 200 people . The National Police arrested this manager and insurance agent from Vélez-Málaga (Málaga) and his partner this Tuesday in Logroño , where they had fled.

Gutiérrez was a manager and also worked for the insurance company Occident (formerly Catalana Occidente). For years, he had been building a network of small investors. He had disappeared two weeks ago , without any sign of his clients.

The National Police opened an investigation following complaints from those affected , until the alleged fraudster was located this Tuesday in the capital of La Rioja.

How he managed to appear to be a reliable investor

The investigation remains open to determine the financial extent of the "massive scam." According to the police investigation, Francisco Gutiérrez used a criminal structure based on a type of pyramid scheme.

He and his wife, a Ukrainian insurance agent with Alliance, had been managing investors' money in Vélez-Málaga, his hometown, for three decades . In addition to working for a family member's consultancy, he ran a bar . He had earned a good reputation and, above all, trust.

This reputation had allowed them to build a significant network of small investors who trusted them with their savings. Under the guise of being an excellent investor, Paco "the Good" received large sums of cash from individuals and businessmen to invest in profitable businesses.

Investigators have observed that the detainees applied different criminal methods tailored to the victim's profile . Thus, a small-scale saver was offered a financial product or investment fund from an insurance company, while a businessman was tempted with real estate investments.

Various ways to cajole

According to several victims, the alleged fraudster followed different modus operandi . For example, he demanded cash for the insurance company: he issued a receipt to the "investors" without informing them how and where he handled the money . He also received cash sums for the supposed purchase of seized assets.

Gutiérrez also received money through wire transfers, supposedly for investment funds . The initial payments went to the insurance company, but the remainder went into his own accounts.

He also allegedly resorted to investments in real estate projects , requesting contributions of €30,000 or more to participate in real estate investments in Vélez-Málaga or to purchase apartments in other locations. Another option was to acquire properties he claimed to have purchased or was about to purchase at prices well below market price.

Those affected by the scam never acquired the right to housing or any real estate project, nor was the money used for that purpose. Paco "el Bueno" also allegedly kept money from the tax returns he filed annually with his clients.

How much has he scammed?

These methods were allegedly carried out by Gutiérrez over the past fifteen years and recently collapsed with the first complaints from those affected who were no longer receiving any benefits.

The amount of the scam is unclear: reports range from €5 million to €300 million . Estimates from the complainants themselves, who organized a group to report the incident, suggest a scam of more than €100 million, EFE reports.

Who are the scammed?

Currently, 80 victims have reported the incident , although investigators are aware that this number could increase significantly due to the magnitude of the scam.

They are primarily small investors. Among them are small business owners, but also police officers, civil guards, young people (Kiko, a resident of Torremolinos, donated up to €58,000 to an investment fund over the past three years), and the lottery winner who decided to entrust Paco "el Bueno" with the management of his assets.

Most of them are from Vélez-Málaga and the surrounding area, but the alleged scammer's reputation for supposedly good management had spread to other parts of Spain , especially among those who spent their vacations in this Malaga town. According to El Mundo , some "clients" had seen their income increase by 300 percent.

Why did they trust Paco?

The generous investments were the result of Gutiérrez's reputation as an excellent manager, his high standard of living, and a certain "generosity." This latter aspect, when recruiting new victims, manifested itself in invitations to major events, with transportation included and expenses paid.

All of this built a reputation that even spread beyond the town. This popularity generated a pull effect that allowed him to attract new clients, which in turn gave him access to social circles and, thus, further expand his network of contacts.

How and when the deception is exposed

The alleged scammer had gained fame through his work as a consultant for years. Everything was done "in confidence." But two weeks ago, he stopped responding to his clients and disappeared.

Those affected began organizing and filing complaints, which led to his arrest in Logroño last Tuesday. Now, the victims face police and judicial proceedings to try to recover their money.

Jail for him and restricted freedom for her

Three searches were carried out in the Malaga town of Vélez-Málaga and one in Logroño, where the detainee was hiding with his family . During the searches, officers seized numerous documents and electronic devices.

Paco "el Bueno" is now in prison, according to a Logroño judge who took his statement this Thursday. His partner was taken into custody by the judicial authorities, who released her, but with restrictive measures . She is prohibited from leaving the country, has her passport revoked, and is required to appear in court every two weeks.