Toulouse ‘Madoff’ suspected of scamming €33 million is back in France
Fraudster claimed money would be invested into solar panel installations, but was instead used to fund extravagant lifestyle
The scammer has over 400 alleged victims in the Toulouse area
fizkes / Shutterstock
A criminal dubbed the ‘Madoff’ of Toulouse, suspected of scamming people out of €33 million, has been extradited back to France from Colombia.
Police from Toulouse are now leading an investigation into Michaël Fraysse, 46, who is accused of using a sophisticated Ponzi scheme to scam over 400 victims out of huge sums of money.
He is believed to have run an intricate pyramid scheme which claimed to invest funds into solar panel installations and hotels.
Investigations into the father-of-three began in 2021, after which he fled France.
Interpol issued a red alert for his arrest after he fled, and he was arrested in Colombia in December 2022.
He was subsequently jailed in a notoriously dangerous prison in the country, with his lawyers working to extradite him to France for safety reasons.
He is now imprisoned in the Landes department, where he is awaiting trial for offences including fraud, money laundering, and illegal commercial practices.
His lawyers are not willing to comment on the case until it has gone to court.
Dozens of offshore accounts used
Investigations into Mr Fraysse began in 2021, after suspicions were raised about his financial activity which had been ongoing since 2015.
Investigators uncovered an expansive network of fake companies – around 15 – that were allegedly being used to invest in solar panel installations and hotels.
Victims were encouraged to invest in the companies via a series of around 40 accounts spread throughout 11 countries. The money was then funnelled back to Mr Fraysse.
These companies promised investors returns of between 6% and 12% per year.
However, the funds were not invested into any programmes, money from new recruits was used to pay interest to those who had already invested, encouraging them to increase their commitment.
Some have told media outlets including La Dépêche (paywall article) how they were scammed out of over €40,000 across a number of years.
Alongside using funds to recruit new members to the scheme, Mr Fraysse lived a life of luxury, visiting casinos and spending thousands on holidays and expensive items.
It is believed a number of accomplices helped him launder the money worldwide, however as of August 2024 no-one else is under investigation.
Read more: Eight scams doing the rounds this summer in France
