y the time the crisis hit, the idea that life could ever be the same again weighed heavily on the speaker. A stark prediction spoke of ruin, a sense of being erased from the world and of looming jail and bankruptcy.
ecades ago Manuel Fernandez de Sousa-Faro foresaw that the aggressive ambition steering Pescanova would lead him into trouble with the law.
confidant was informed that the forecasts, reported by Faro de Vigo and part of the case file, warned there was little chance to survive the fallout of bankruptcy and that deception would eventually surface. The notes described a path toward prison and personal ruin.
orn in Merida in 1951, the businessman was prescient. He may have avoided openly confronting the magnitude of risk alone, since among the twelve prison sentences handed down by the National Court, only his remained, a stark reminder of the company
s former omnipotence. The founder’s son was expected to influence events. He received six years in prison on charges of falsifying annual accounts, falsifying economic data, and diverting assets. The inner circle that helped Pescanova project a false image to banks and investors faced lighter outcomes, with sentences under two years and no prior record. The verdict pierced the core of Sousa-Faro
s life: freedom, property, and Pescanova SA, as a legal entity, were both stripped of their remnants.
t his best, the executive admitted: the situation was unimaginable at his age, facing unemployment and loss of prestige.
Supreme Court reduces Pescanovaa s ex-president
s sentence, but orders 125 million in compensation to injured parties
February ruling by the Criminal Chamber of the Supreme Court of Appeals brought the trial to a close, delivering more measured sentences than the earlier judgment. The decision also cleared the BDO auditor and managing partner Santiago Saf1e from falsifying annual accounts, while San3e was cleared of similar charges. The ruling, a lengthy document, was signed by the panel and covered hundreds of pages. Sousa received an eight-year term, was cleared of some charges, and faced a reduced sentence overall. It also rejected a proposed transfer of funds poised to reach Hong Kong via Portugal, a move tied to personal relationships and offshore arrangements. The case involved a complex web of assets and a strategy to extract value from the company.
tricks
ourt documents recount the sequence of early decisions: Sousa, with trusted associates, implemented a varied set of measures to conceal Pescanova’s bankruptcy. Growth ambitions relied on cheap loans and a large borrowing spree between 2007 and 2013, with the goal of becoming a global leader. When repayment became impossible, a network of instrumental companies was used to sell fake fish, produce invoices with past customers, hide debt in subsidiaries, and place large purchase orders. The company sought to simulate activity that would unlock factoring and documentary credits. The defense argued that these moves were driven by market realities and justified as acts of social benefit. Yet the measures created a misleading portrait of solvency for investors and lenders. Pescanova SA emerged as the protagonist in a historic non-property tender, carrying a debt exceeding 3.65 billion euros. The multinational group faced asset loss, including Pesca Chile, Nova Austral, Lafonia, Austral Fisheries, Nova Honduras, Acuinova Actividades Piscedcolas, Hasenosa, and Belnova across several continents.
participant noted friction with counsel, joking that ships were being sent away and that Pescanova had displaced assets abroad.
uring the financial crunch, the cheap-loan strategy used by Sousa and allied executives evaporated, and the cycle of deception began to reveal itself. The court concluded that Sousa continued to falsify economic data in documents meant for disclosure, deliberately concealing bank responsibility while seeking investor finance to sustain growth. The behavior undermined trust and indicated a motive tied to benefiting those around Pescanova SA. The verdict underscored that the deception harmed mutual funds and private savers invested in the fisheries sector.
DO’s role drew strong scrutiny in the revised ruling, which criticized prior findings as muddled and lacking clear reasoning. The court suggested that the auditor may have failed to adhere to professional standards and that the accounting records of Pescanova SA should be scrutinized more rigorously. The decision emphasized the need for accountability in auditing practices, while noting gaps in the defense of the auditor and the company.
s the proceedings unfolded, the narrative highlighted a broader impact, with indemnity discussions touching multiple organizations and investors. Only the auditor carried an insurance policy with Mapfre, covering a portion of losses, while the rest faced potential civil actions against oversight bodies. The group prepared to pursue remedies in civil courts, while Pescanova SA explored options to facilitate settlements or redefine its corporate structure.
Banking sector response: no deals found, simply delays in settlement
Organizational conduct sometimes shields those involved in fraud
uring the Madrid hearing spanning late 2019 to mid-2020, Sousa argued that banks and mutual funds conspired against him by withholding emergency support. He claimed there had been no real effort to secure a coordinated loan package. The court, however, found that financial institutions issued a range of instruments without proper verification and that the collaboration among entities did not reflect prudent risk management. The decision noted that banks did not implement effective collection processes and that documentary loans often lacked verification of shipment of goods. The ruling concluded that Sousa and his team did not act with commercial motive but rather to sustain a failing enterprise through a flawed financial strategy. The end result was a conviction that did not bar all charges, but clarified the limits of liability for the key figures involved.
Ten years
ppeals numbered nineteen against the National Court decision, with several requests for reduced fines to avoid delays. The February milestone marks a decade since Pescanovaa0s bankruptcy filing with the market regulator. The period involved lengthy proceedings that tested the flexibility of the appeals chamber while attempting to balance justice with efficiency.
public statement reflected the pressure of ongoing legal action as the speaker described a countdown of weeks before leadership changes, the start of a cascade of lawsuits, and public scrutiny over past financial losses that had been attributed to these years.
sentences