Viennese seller helps police trap villa fraudsters

A Viennese real-estate trustee helped police set a trap for people suspected of trying to defraud him during the sale of his villa in Marbella, ORF reported. Police seized more than two million euros in counterfeit banknotes and arrested three people.

Police described the operation as the largest trap involving a “rip deal” in Austrian criminal history. A purported buyer and an alleged estate agent had offered to buy Erich Podstatny’s villa, with the down payment to be made in cash and the commission in gold coins. Podstatny became suspicious after searching online for information about property fraud involving cash.

In a rip deal, fraudsters pretend they want to buy something expensive, such as a property or a luxury watch, then propose an additional transaction, usually a currency exchange at an unusually favourable rate. Victims typically receive counterfeit money when the exchange takes place.

After several meetings with the suspected fraudsters, Podstatny reported them to police. Investigators from the Rip Deal Unit Vienna launched an operation called Castillo. Podstatny met the suspects in Marbella, supposedly to count the cash. At the same time, an undercover officer posing as his son met another suspect near Vienna’s main railway station, carrying fake gold coins intended as the estate agent’s commission.

Three people, two Dutch nationals and one French national, were arrested during coordinated raids in early October. Investigator Valentin Szaga-Doktor said arranging arrests in two places at once was the operation’s biggest challenge.

Police urged anyone affected by such fraud to come forward and said victims should report it in Austria. Podstatny said he wanted the suspects caught to help prevent others from becoming victims. He is now hoping to find a genuine buyer for his villa.