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Juan Carlos, who abdicated from the throne in 2014, has been accused of using Corinna zu Sayn-Wittgenstein’s name to buy property in Morocco.
Ms Sayn-Wittgenstein, 53, who has been romantically linked with Juan Carlos, has also claimed the former king tried to secretly hide money.
The German aristocrat, who is 27 years younger than her former lover, said Juan Carlos also put several Swiss bank accounts under the name of a cousin, Alvaro d’Orleans Bourbon, in Switzerland.
She also claims Juan Carlos pocketed over €80million from a contract with Saudi Arabia for a high speed train running between between Riyadh and Medina, according to The New Arab.
Ms Sayn-Wittgenstein says Juan Carlos siphoned cash from foreign deals in a bid to divorce his wife Sofia and marry her.
The scandal broke after two Spanish websites published recordings attributed to Ms Sayn-Wittgenstein.
Spain’s far-left Podemos Party has now called for an investigation into the claims.
Juan Carlos, who is now 80, was forced to abdicate in 2014, just two years after he hit the headlines over a elephant hunting trip he went on in Botswana with Ms Sayn-Wittgenstein as Spain was gripped by recession.
The latest claims emerged just months after the brother-in-law of the King of Spain Felipe VI became the first member of a Spanish monarch’s family to go to prison.
Princess Cristina’s husband Iñaki Urdangarin was sentenced on appeal for five years and 10 months for embezzlement, influence-peddling and tax fraud by the Supreme Court.
Urdangarin, 50, was last year convicted of using his not-for-profit Noos Institute sports foundation on the island of Majorca to siphon off millions of euros for private use.
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