Members of The United Tribuns organisation allegedly pretended to be Police Officers in order to steal drugs from other gangs.
The organisation was founded in Germany in 2004 and describes itself as a union of bodybuilders, martial artists and security guards.
But Investigators claim that United Tribuns has strong links with National and International rightwing extremists and neo-Nazi organisations.
Members have been living in Majorca since March 2018 and allegedly laundering the money they make from illegal activities through a business network that provides members with fraudulent contracts.
Police say members of the organisation have spent the last two years working as Security Guards at nightclubs in s’Arenal and allegedly intimidating drug traffickers in bid to take over their turf.
On Thursday, Police arrested at least 16 members of the organisation in Palma, Barcelona, Tarragona and Valencia, who face a raft of charges, including belonging to a criminal organisation, drug trafficking and document fraud.
Officers also busted an ecstasy laboratory at the home of one of United Tribun’s top men, Stefan Milojevic.
"We have discovered that the leader of the criminal organisation would be interacting with a group of German hooligans on the Island, that he would use as a logistic device to introduce illegal merchandise," said the Investigators.
Officers also say fake National Police and Guard Civil licence plates and police uniforms were confiscated from the homes of members of the organisation during the raids.