Spanish authorities have arrested four individuals linked to a massive VAT fraud scheme in the hydrocarbon sector.

Among those detained are businesswoman Carmen Pano and her daughter, Leonor González Pano, who allegedly facilitated illicit payments and property deals involving former Transport Minister José Luis Ábalos.

The operation, led by the Guardia Civil, also targeted Luis Alberto Escolano, accused of acting as a frontman to hide assets for Victor de Aldama, the alleged mastermind behind the scheme.

Investigators estimate the fraud exceeds €182 million, with funds laundered through a network of companies and accounts.

The case has also implicated political figures, with claims of cash deliveries to the PSOE headquarters in Madrid.

Authorities continue to search for evidence to strengthen the case.