Court finds ex-Mansion CEO guilty of contempt

Gibraltar’s Supreme Court has imposed a 12-month custodial sentence on Karel Mañasco, the former CEO of Mansion Group, after he was convicted of multiple counts of contempt of court.

Chief Justice Dudley determined that Mañasco willfully breached court orders, including a global asset freeze and provided inaccurate information under oath. This landmark ruling has significant implications for corporate governance in the gambling sector.

The legal action initiated by Mansion (Gibraltar) Limited and Onisac Limited centers on Mañasco’s alleged misappropriation of approximately £5 million in corporate funds, a claim he categorically denies. The charges encompassed unauthorized international transfers, violations of court-imposed financial conditions, and the submission of a false sworn statement, highlighting the critical nature of compliance in the highly regulated gambling industry.

The court cited a notable incident where Mañasco transferred over £400,000 to a bank account solely in his wife’s name in Spain, contravening explicit prohibitions. Furthermore, he exceeded his allotted spending thresholds and failed to report expenses by nearly £77,000, thus raising serious concerns about financial integrity and transparency within the organization.

Mañasco’s failure to attend multiple hearings, including key sentencing dates in April and May, led the court to issue a bench warrant and proceed without his presence. Such behavior underscores the importance of accountability and adherence to legal obligations in corporate environments.

Chief Justice Dudley emphasized that in a democratic society, court orders must be upheld irrespective of personal sentiments. The sentencing includes a three-month term for providing false testimony, with the 12-month imprisonment partially remittable by six months should Mañasco reimburse the £400,000. While the judge acknowledged Mañasco’s previously unblemished record, he deemed the actions too severe to warrant suspension of the sentence, particularly due to Mañasco’s repeated noncompliance.

Mañasco has a 14-day window to lodge an appeal without requiring prior court approval. His legal counsel informed NEXT.io of their intention to proceed with an appeal, as the ramifications of this case continue to reverberate through the gambling industry.

This case serves as a cautionary tale for executives in the gambling sector, reinforcing the necessity for stringent adherence to regulatory compliance and the grave consequences of financial misconduct. It exemplifies the ongoing vigilance required in maintaining transparency and accountability in a highly dynamic and scrutinized industry.