Spanish authorities said on Tuesday that hundreds of thousands of small investors may have been swindled by two stamp-trading companies.

Police raided the offices of Forum Filatélico and Afinsa, two companies that placed investors’ savings into stamp-investing schemes. Some 300 police officers sealed the headquarters of the companies and the vaults where stamps were stored.

About 343,000 Spaniards had invested more than €5bn ($3.4bn) in the schemes.

The Spanish government warned on Tuesday night that the investments were not covered by bank deposit insurance and fell outside supervision of the country’s financial authorities. A spokesman said the companies were suspected of “fraud, criminal insolvency, money laundering, tax evasion and embezzlement”.

Posted: 05|10|06 at 9:37 am. Filed under: Auction News.