Malaga crime: Scándalo strip club bosses jailed for 16-year tax fraud

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Court hands down million-euro fines after massive money-laundering sting uncovers hidden millions and luxury property empire

Irene Quirante

Friday, 13 February 2026, 11:34

The former managers of the Scándalo strip club in Malaga have been sentenced to 16 years in prison and hit with multi-million euro fines following a major tax fraud and money-laundering investigation.

A provincial court ruled that the primary defendant and his "right-hand man" concealed more than €5 million from tax authorities between 2006 and 2009. The pair used a network of seven shell companies to launder illicit profits through fake loans and rental contracts.

Four accomplices - including the main defendant’s partner, a lawyer, an accountant, and an administrator - were also convicted for their roles in the scheme. They received sentences ranging from six months to a year and a half.

All four will have to pay fines exceeding two and a half million euros, while the fines for the two main defendants are close to nine million euros.

The court has also barred the two from working in businesses linked to the hospitality and nightlife sector for the duration of their sentences.

The judge has considered the mitigating circumstance of undue delay when determining the sentences.

The two main defendants managed at least seven shell companies with the help of the other suspects, who appeared as formal administrators.

These companies operated with a single cash register and a single address. The defendants used them to launder illicit proceeds, channelling undeclared cash through simulated loans, fake rental contracts and inter-company transfers.

The money was later invested in property, vehicles and boats in order to give it the appearance of legitimate income.

The case is part of a bigger investigation into the Scándalo clubs in Malaga and Cordoba and the Las Estrellas club in Torremolinos. The investigation revealed the existence of a whole corporate network created to hide substantial profits derived from the operation of these brothels.