Edition 142
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Friday, November 8, 2013
CAM AND GET IT Bankers face embezzlement quiz By ALEX TRELINSKI Five exbosses of the failed CAM Bank have been arrested after a major fraud investiga tion into its activities. The first two suspects to be arrested, CAM's exgen eral manager Roberto Lopez Abad and Daniel Gil, one of its exdirectors, were questioned by a judge yes terday. CAM, which used to be Spain’s 10thbiggest bank, was taken over by Banco Sabadell as part of a shakeup to stabilise the financial sector which was
Roberto Lopez Abad
hit hard by the collapse of a building boom in 2008. Judge Javier Gomez Bermudez is investigating allegations that the former CAM bosses embezzled funds. The court also sus pects that "the five suspects knew about, or should and could have but did not want to know about, the state of CAM's assets" before it col lapsed, he wrote when he set bail for them in June. CAM was taken over by the Bank of Spain in July 2011, with the management being sacked, and nearly 3
billion Euros pumped into it to keep it going. Bank of Spain inspectors said there were serious deficiencies in CAM’s bosses which led to big losses in risky real estate operations. The inspectors also noted that the directors had awarded themselves multimillioneuro early retirement packages. Before the bailout, CAM’s manage ment had reported a net profit in the first quarter of 2011 of 38.9 million Euros, only for the profit and loss account 3 months later showing a loss of 1.136 bil lion Euros. CAM was subse quently sold to Banco
Sabadell for a nominal one Euro. In a separate operation, the Guardia Civil have arrested 9 people around the country, including Alicante Province, on the back of an 18 month fraud investigation into CAM’s investment in a series of lux ury hotels in Central America. It is alleged the hotels were used for money laundering and tax evasion, helped by a number of legal firms, which cost the Spanish Government mil lions of Euros. Reports sug gest that more arrests are imminent.
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Daniel Gil
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