French authorities have uncovered what they describe as a wide-reaching fraud and money laundering scheme involving a family in Beaulieu-sur-Mer, with alleged abuse of the national social welfare system at its core.
In a statement issued on 19th November, the Public Prosecutor of Nice, Damien Martinelli, confirmed that three people — two men and one woman — are to face formal judicial investigation following a large-scale operation carried out by military personnel in the Menton region the previous day.
“The extensive investigations conducted appeared to confirm a significant discrepancy between spending, financial flows and the income declared, which primarily came from family allowance benefits,” said Martinelli, pointing to significant disparities between declared income and actual lifestyle.
The preliminary investigation, opened at the end of 2024, was led by a specialist unit of the Nice prosecutor’s office and assigned to the gendarmerie’s research brigade in Menton. It focused on individuals already known to authorities and suspected of drug trafficking and other financial offences. Several were found to be living in apparent luxury, far beyond their officially declared means.
Authorities allege the suspects used social welfare benefits as their primary declared income while simultaneously spending vast sums on luxury goods, gambling, and high-end vehicles. Searches took place in several locations, including Monaco, under a formal request for mutual legal assistance issued to Monegasque authorities.
The operation resulted in the seizure of €76,000 in cash — some of it packaged — along with a €22,000 winning casino ticket, multiple luxury watches including five Rolexes, high-end leather goods such as Vuitton bags, and two cars and two scooters. “The cash and goods seized were valued at around €290,000,” said Martinelli. Additional seizures from bank accounts exceeded €610,000.
Five people, all from the same family, were arrested. Three will be brought before a judge on charges including organised money laundering, tax fraud, fraudulent insolvency, and defrauding a social organisation. The two male suspects, born in 1982 and 1983, have prior convictions for extortion, aggravated violence, weapons offences, and drug crimes, and have previously served prison sentences. The third suspect, their sister, has no criminal record.
The prosecutor confirmed that he is seeking pre-trial detention for the brothers and judicial supervision for the sister.
“As part of an agreement signed with the family benefits agency (CAF) of the Alpes-Maritimes, information may be shared to assist with recovering any unduly received payments,” Martinelli added.
The investigation remains ongoing.
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