A TOWN councillor was arrested in Malaga amid investigations into a prostitution ring that laundered millions with the help of local white-collar professionals, authorities have said.
Right-wing Partido Popular’s Miguel Vazquez, who was serving as councillor for industry, development and European funds in the town of Coin, west of Malaga, resigned from his post after authorities launched a probe into his alleged role as tax advisor within the money-laundering network.
Vazquez was among 10 people arrested over a scheme that forced 42 women to work around the clock in two illegal brothels, one in Malaga proper and the other in Cartama, and then washed the proceeds by purchasing property or setting up fake companies – an operation that earned the gang more than €9 million in just four years, authorities said.
A spokesperson for Coin’s branch of Spain’s socialist PSOE party said: “There are crimes and crimes. But here, we are talking about money laundering linked to funds from human trafficking. To think he is a public official.”
The Partido Popular (PP) has opened an internal enquiry into Vazquez, but stressed the allegations were not related to his role as councillor – but rather stemmed from his private business as a tax advisor.
To compound the political backlash, far-right VOX demanded urgent explanations from Coin’s administration – as party spokesperson Luis Miguel Rivas lambasted mayor Francisco Santos over his failure to comment publicly following Vazquez’s arrest.
“He remains in hiding, refusing to face the issue, as if this matter does not directly affect the reputation of Coin,” Rivas said. “It is neither serious nor responsible for residents to learn about such a sensitive matter through the press while the mayor remains completely silent.”
Authorities launched their probe into the prostitution ring after one of the women enslaved by the gang managed to break free and report everything to the police.
Officers found that the criminal group forced the women to live inside the brothels under strict surveillance and constant threats.
Victims had to be available for clients 24 hours a day, seven days a week, with no real rest and little freedom.
Some were forced to perform sexual acts they did not want to – often without protection.
In one of the premises, police even discovered a makeshift cell – a cramped room used to isolate or intimidate the victims if they disobeyed or complained.
Many of the women had travelled from other countries and were left vulnerable without legal documents or support networks. Once inside the brothels, they had no way out.
Several victims were also pressured to push clients into taking drugs or sexual-enhancement substances, further boosting the gang’s profits.
Some reportedly generated between €3,000 and €4,000 per night, authorities confirmed.
Behind the scenes, the group also ran a sophisticated money-laundering network, channelling their earnings through a web of fake companies, property purchases and business accounts.
Shockingly, the gang relied on a handful of white-collar professionals – including a lawyer, a notary, a bank director, and allegedly Vazquez himself – to help disguise the true source of the cash and keep the criminal enterprise running in plain sight.
The operation’s lead investigator told Malaga Hoy: “[These professionals] never reported any signs of money laundering, but their support was essential.”
“They operated from a position of privilege, hiding in plain sight,” the investigator added.
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At the centre of the network were also five front men, all living in severe financial hardship – some reportedly below the breadline and without a stable place to live.
Around these individuals, the gang built a web of companies that appeared to operate in sectors such as hospitality and construction.
In reality, the purpose of these businesses was simple: to absorb the cash flowing in from the brothels and disguise it as legitimate income, providing a clean facade for the organisation’s profits.
Under Vazquez’s stewardship, Coin missed out on €8 million in EU subsidies that were instead awarded to several neighbouring towns.
When Vazquez resigned in mid-November ahead of a full council meeting – citing only “personal reasons” – Coin’s PSOE branch believed it was due to his failure to secure European funds.
“And then we saw the news,” a spokesperson added.
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