MALAGA GAZETTE

Monday, May 05, 2008

Two of Spain's respected savings banks, 'La Caixa' in Barcelona and 'Caja Madrid,' were found liable,


Monday, May 05, 2008 |

A six month trial has led to the conviction of eight people, on charges of fraud and embezzlement in the 'Gescartera' brokerage house, during June 2001. Gescartera was rumbled and lost its licence, when it was discovered that over 100 million euros of some 2,000 clients' money was missing. The collapse caused massive political unrest and the resignations of the Junior Finance Minister and President of Stock market regulator 'CNMV.' Judges passed prison terms of between 3 and 11 years to those concerned, while penalties totalling 88 million euros were ordered to be paid out to investors who lost money, including various churches and charities. Two of Spain's respected savings banks, 'La Caixa' in Barcelona and 'Caja Madrid,' were also found liable, having handled the majority of the fraudulent transactions. Two of their employees were among those convicted. A Parliamentary enquiry overruled any Government responsibility for the operation.


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