Operations and losses
CAM faced a long, intricate saga of investigations and charges tied to a wave of private operations and losses. The core issue centered on a set of deals and holdings, described as private charges, where CAM and its investment vehicles, including TIP, were involved in land acquisitions and related real estate activities. The company often acted as both shareholder and financier, a combination that broadened risk and created opportunities for disputes over value and control. A Bank of Spain assessment noted gaps in the governance of TIP and CAM, highlighting a lack of rigidity in approach and limited oversight, with many projects ending in failure. This sequence led to significant financial damage, with investments totaling close to 600 million, of which a substantial portion was deemed irreversible losses. Public aid injected through the fund and the state deficit became pressing concerns as CAM faced intervention and recovery due to the threat posed to the financial system. [Attribution: Bank of Spain assessment; Public records on CAM losses]
The case originated from a 2015 lawsuit filed after the Deposit Guarantee Fund (FGD) alleged that CAM funded land acquisitions between 2004 and 2009. The proceedings targeted several individuals, including businessmen and former executives, for operations tied to real estate purchases and related financing. The court initially rejected certain claims as time-barred, only to reopen the matter later after an appeal by the Fund. The legal debate touched on whether the conduct constituted unfair management and ongoing embezzlement, with the defense arguing prescription and the prosecution seeking a broader interpretation of persistent financial misconduct. [Attribution: FGD case filings; court decisions]
The prosecutor stated that the facts could be interpreted as unfair management with foreseeability of consequences years ahead. The FGD’s counsel contends that criminal liability for continued embezzlement could endure for up to ten years, depending on the progression of the charges and the nature of the acts involved. The legal team emphasized the need to clarify how the financial transactions benefited those listed as partners, while the defense argued that any criminal offense, if proven, would have run its course by prescription. [Attribution: Prosecutor’s assessment; FGD counsel remarks]
Limited to explain
As the court’s handling of the case evolved, two defendants were no longer part of the core proceedings, shifting the scope of the instruction to an abbreviated procedure focused on explaining the various financial transactions conducted by CAM in land purchases. The aim was to determine whether those involved profited unduly without detailing the precise financial gains from the alleged embezzlement or unfair management. Authorities noted that if an offense existed, it would likely be prescribed by now. The discussion underscored the tension between what could be explained about CAM’s land operations and what remained legally actionable. [Attribution: Court rulings on abbreviated procedure; summary of the ongoing explanation phase]
Roberto López Abad faced a seventh appearance on the bench, while Daniel Gil attended for a third time. The former managing director continued to rely on his credibility as the case progressed, even as other figures connected to the organization awaited resolutions. Crespo, the former head of the organization, faced separate outcomes in related proceedings, with some allowances and sentences connected to prior actions. The Supreme Court had planned to review certain sentences, but scheduling changes postponed a formal decision. [Attribution: Court appearances; related sentencing notes]
To date, eight of the nearly fifty former CAM executives subjected to trial have received final verdicts. In a couple of instances, money was recovered through related cases, including a Caribbean operation and Crespo’s arrangements. The amounts recovered were in the vicinity of tens of millions of euros, with several other sums still tied to ongoing appeals and future rulings. [Attribution: Final verdicts and recoveries; ongoing appeals]
Other CAM proceedings
1. Wrong Accounts — The court convicted several former leaders for altering CAM’s accounts, resulting in prison sentences spanning 1.6 years for one defendant and two years for another. [Attribution: Court verdicts on account alterations]
2. Honest Crespo Diets — The Supreme Court upheld sentences forModesto Crespo, López Abad, and other former directors, with minor reductions. The case involved a payment of 600,000 euros connected to Crespo’s benefits. [Attribution: Supreme Court rulings on Crespo case]
3. Caribbean Business — López Abad and Daniel Gil were slated for two-year terms for their roles in Caja el Caribe, alongside others who received similar sentences. [Attribution: Caribbean operations rulings]
4. Relations with Hansa — Some directors were acquitted of irregularities in the relationship between the fund and the associated company. [Attribution: Hansa relationship rulings]
5. Avilés Loans and Diets — Acquittals stood for López Abad and the former control commission chair, Avilés, regarding loans and allowances. [Attribution: Avilés acquittal details]
6. Quotas and Preferences — A case related to financial products involving López Abad and Amorós did not advance when charges were withdrawn at the first hearing. [Attribution: Quotas case proceedings]