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The founding partners of Gibraltar law firm Marrache & Co face bankruptcy as claims against the firm rise to £34m.
Jonathan Goldberg QC
Brothers Benjamin and Soloman Marrache, who have been in custody at Gibraltar’s Moorish Castle since 18 February on false accounting charges, had receiving orders made against them by the country’s Supreme Court on 30 April after consenting to judgment for £1.8m of missing client money.
Unless an agreement can be reached at the creditors’ meeting, scheduled for 12 May - which according to a source close to the case is unlikely - the brothers will be declared bankrupt at the meeting.
A third brother, Isaac Marrache, who has since been arrested for conspiracy to defraud, consented to the same judgment, but has been granted leave to appeal the decision.
In a statement made to the Gibraltar Chronicle prior to Isaac’s arrest, his lawyer, UK silk Jonathan Goldberg QC, said his client was “mortified” that his “once highly successful” firm had been plundered and that he was heartbroken that his close family may be implicated.
According to a source, claims against Marrache & Co exceed £34m - £13m in bank debt and £21.5m in unsecured creditors’ debt.