Questions linger as the latest criminal action remains unresolved, the case portfolio of CAM management still alive in a sequence of seven opened matters. The National Court archived some cases tied to performances and oversights, while a number of accused businessmen faced charges that proved too vague or expired by prescription. Eight former CAM executives and about a dozen businesspeople, including Roberto López and Daniel Gil, have petitioned the prosecutor for similar treatment across various counts.
The Deposit Guarantee Fund (FGD) has argued that former directors and businessmen engaged in ongoing misappropriation or ongoing mismanagement, seeking sentences of up to six years in prison and seeking roughly 500 million in compensation. The Bank of Spain estimated CAM on the hook for damages tied to alleged irregularities connected to the financing of projects by institutions and business figures.
The lawsuit was filed in 2015 after the FGD complained that CAM-funded operations between 2004 and 2009 involved land purchases. A procedural phase saw the court twice acknowledge prescription, only for the tribunal of the same chamber to reopen the proceedings and the Fund to appeal for dismissal.
As the proceedings progressed, the prosecutor noted that the facts could be characterized as unfair management, with the FGD’s solicitor, Carlos Gómez-Jara, suggesting the liability could fade after a decade. The argument centers on whether the crimes of embezzlement or unfair management were present and whether any liability has expired.
Operations and losses
The case has been described as a private charge, while the public sector sought acquittals based on the statute of limitations. It touches CAM directly and many of its subsidiaries. The Investment and Holdings structure (TIP) is a vehicle through which CAM participated as a partner and financier, often backing land purchases at higher prices to fuel projects. The indictment, as explained by Gómez-Jara, outlines a pattern where CAM’s role oscillated between shareholder and financier, which amplified risk and raised concerns about governance.
The participation of CAM stakeholders emerged in a binary fashion: as investors in the equity and as lenders, a dynamic that intensified exposure. A Bank of Spain report noted that several projects suffered from a lack of rigor and supervision by TIP and CAM, with many projects ending in loss.
The Fund estimates investments in various companies total nearly 600 million, with 464 million deemed irreversible losses. The damaged funds required public aid and were marked in the state’s deficit, contributing to the decision to intervene CAM to safeguard the financial system.
“Limited to explain”
The court has been less than decisive, and recent rulings have excluded two accused businessmen from the charge. The instruction to switch to an abbreviated procedure required a narrow explanation of specific financial transactions conducted by CAM for land acquisitions, without detailing the profitability for those named as partners. Still, the court suggested that if a crime had been committed, it would have faced prescription.
López Abad stood before the bench for the seventh time, and Gil faced his third appearance. The former managing director places faith in his credibility, despite penalties that include two years in prison and other related measures. In parallel, another Caribbean venture involving Juan Ferri and José Baldó faced similar scrutiny, with Gil receiving the same sentence on appeal.
The Supreme Court intended to review the sentence last week, but the session was postponed due to scheduling and did not address the merits of the case. To date, eight of nearly fifty former CAM executives have earned final sentences across the campaigns brought by the CAM administration. In two instances, assets were recovered: one related to the Caribbean operation and another tied to Crespo’s dietary arrangements. The total recovered funds approached 13 million euros, with further recoveries pending.
Other CAM operations have also drawn scrutiny in separate rulings.
1. WRONG ACCOUNTS
The court’s rulings against former leaders Roberto López Abad, Dolores Amorós, Francisco Martínez, and Teófilo Sorgorβ left Amorós with 1.6 years and Sorgorβ with two years in prison.
2. HONEST CRESPO DIETS
The Supreme Court upheld the sentences of Modesto Crespo (nine months), López Abad (two years), and several former directors, though penalties were adjusted, including a relief of one year for Crespo’s related matters involving 600,000 euros.
3. BUSINESS IN THE CARIBBEAN
López Abad and Daniel Gil face two years for their roles in Caja el Caribe, alongside Juan Ferri and José Baldó, who received the same sentence.
4. RELATIONS WITH HANSA
The court acquitted Amorós, Daniel Gil, Vicente Sánchez, and Rafael Galea regarding irregularities in ties between CAM and the associated company.
5. AVILÉS LOANS/DIETS
The Supreme Court sustained the acquittal of López Abad and the former head of the control commission in relation to loans and allowances connected to Juan Ramón Avilés.
6. QUOTAS AND PREFERENCES
The case involving López Abad and Amorós connected to these financial products did not proceed when charges were dropped at the first hearing.