New sentence to the former managers of Banco de Valencia, the entity controlled by the Bank of Spain in 2011, the FROB had to pump initially to 1,000 million. The National court has sentenced the former chief executive of the company, Domingo Parra, a year and three months of imprisonment for an offence of unfair administration. Parra acknowledged during the trial, held between November and December, that it was he who gave the greater credit transaction undertaken by the entity and that it did so without analysis of feasibility and manipulating the internal procedures.
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The former ceo of Bank of Valencia admits the crime at the trial by the higher credit failed the entity’s National Audience to process the excúpula of Banco de Valencia by false accounting
The judge considers Parra responsible for granting a credit of € 312 million to the group of the entrepreneur Bautista Soler for the purchase of a stake in Metrovacesa. The operation left in the accounts of the entity a hole of nearly 94 million euros which is now ordered by the court to pay to the Fund for Orderly Bank Restructuring (FROB), which he considered to be the most affected. This is the first time, according to legal sources, that the National court quantifies the amount by which this agency under the Bank of Spain was harmed, regardless of whether the loans were returned or not.
the compensation must also respond to the employer Bautista Soler, her daughter Victoria and husband of this, Vicente Fons, as beneficiaries of the loan. The National court sentenced to two years in prison as co-workers necessary for a continuing offence of unfair administration. Also has been sentenced to nine months in jail for Rafael Ruiz Jarabo, the sole manager of one of the companies with which it is distributed credits, as an accomplice. The judge absolves from the rest of offences (misappropriation and misrepresentation documentary) who attributed the allegations private.
Credits for the purchase of Metrovacesa
The initial funding to purchase shares of Metrovacesa were asked in 2007, the same year in which the family Sanahuja, the largest shareholder of Metrovacesa, launched a takeover bid (public offer shares) on the 100% of the equity of the real estate to resolve the confrontation with the partners Joaquín Rivero (deceased) and Bautista Soler. The credits that Parra granted to the companies of Soler were refinanced several times. The former ceo acknowledged the facts a day after making an income of 100,000 euros in the account of the FROB, a fact that the ruling recognizes ensuring that “given the current economic situation, in view of the subsequent judicial liens from their property, represents an obvious effort”.
The statement endorses the conclusions of the report made by the Bank of Spain in 2012 (ratified by the experts that developed during the trial), stating that the Bank of Valencia took a few risks that are disproportionate to the financial capacity and management of the entity. These loans, which are in charge Parra directly, were agreed “in the margin of the procedures and controls for regular entity” and were “a cause relevant to the situation of insolvency” which gave rise to the bank resolution and finally to the sale of the entity to CaixaBank for one euro. The FROB ended up injecting another 4,500 million euros.
Parra was the main responsible of these operations ruinous, according to the sentence: “there was Only one person who could, although one should not, authorize the execution of operations before they were approved by the required organs of the bank”. The amount granted to the group Soler (312 million euros) was intended to facilitate the financing of the purchase of 2.4% of the shares of Metrovacesa. The operation lacked the necessary guarantees, according to the report of the inspectors of the Bank of Spain, which come to describe it as “like putting all your eggs in the same basket”.
The operations with the Soler “go far beyond a business of risks atypical”, continues the statement, that he describes as “particularly serious” an operation that, together with others not on trial, “has led to the Banco de Valencia had to be intervened to avoid greater evils”.
The court ensures that the return of a small portion of the loans does not affect the total amount of compensation they have to pay the now doomed. This is the line defended during the trial the lawyer representing the FROB, Carlos Gómez-Jara. The FROB, argues the sentence, no claim may be made (in small quantities returned) to CaixaBank, but yes to the defendants. The economic damage that took “materially it is unrecoverable,” he adds.
Parra will be judged also in the National court for alleged false accounting next to the former president of Bank of Valencia, José Luis Olivas. Parra was sentenced last April to four years in prison for a continuing offence of unfair administration in several macrooperaciones urban projects financed by the entity that caused a loss of 198 million euros. In February last year, the National court also sentenced him to Parra to one year and seven months in prison for a continuing offence of unfair administration for having acted against the interests of the entity to grant a loan to a company with which he himself and his wife, since deceased, they had a relationship.
The FROB has been appearing as aggrieved in 11 legal proceedings in the courts of the National court to recover the amounts for the resolution process of Banco de Valencia.
