Marrache London hits out after Gibraltar partners charged with false accounting
A partner in the London office of Marrache & Co has reacted angrily to news that the firm’s Gibraltar-based founding partners have had their Financial Services Commission (FSC) licenses cancelled, claiming the City base’s reputation is suffering by association.
Benjamin Marrache
Founding partners Benjamin and Solomon Marrache were arrested on Tuesday and charged with falsely accounting €1.8m (£1.58m) of client money. They spent the night in police cells before appearing in Gibraltar Magistrates Court on Wednesday, when they were granted bail at £300,000 each.
The court also required the brothers to pledge £150,000 each, as a recognisance, to hand in their travel documents and report to police twice a week. The case has been adjourned until April.
Steven Daultrey, a partner in Marrache & Co’s London office, which is linked to Gibraltar only through the brand, said he felt “anger, rage and incandescence at certain names working in the firm’s Gibraltar office”.
“I have an office here with people whose livelihoods I have to consider,” he said. “I’m utterly speechless. The Gibraltar firm has nothing to do with the London office; [Benjamin and Solomon Marrache] aren’t signatories here. We do English-law work only.
“I’m concerned for the London office clients too, but at the moment those clients have been nothing but 1,000 per cent supportive. We haven’t had one client complain, they’re saying they’ll do anything to help. They receive a good level of advice here but, in terms of reputation, the situation is awful.”
The Marrache brothers are alleged to have falsified documents to hide €1.8m of missing money belonging to shipping company Portino Comercio Internacional.
Gibraltar’s FSC cancelled nine licenses held by Marrache & Co, which also has offices in London, Spain, Lisbon, Prague and Luxembourg.
According to a statement issued by the FSC the decision to cancel the brothers’ licenses was taken “following an investigation into the affairs of the licensed entities and persons which in the opinion of the Commission have disclosed serious and persistent breaches of Gibraltar’s financial services legislation”.
The Lawyer was unable to reach anyone at Marrach & Co’s Gibraltar office, which is understood to be under police guard, but Benjamin Marrache was quoted in the Gibraltar press as saying: “We intend to appeal the decision of the FSC. If there are any issues involving any of these companies these will be resolved.”
The firm’s Spain, Lisbon, Prague and Luxembourg offices are understood to be linked to the firm by name only.
Frederick White, managing director of Grant Thornton, has been appointed by the FSC as authorised administrator for the firm, in which capacity he will help clients of the Gibraltar office transfer their business to other licensed entities.
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Readers' comments (37)
City Gent | 11-Feb-2010 4:58 pm
Another sunny place full of shady people.
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misspop | 11-Feb-2010 6:49 pm
i come from gibraltar, not everyone in there is shady. just the rich ones generally...
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Anonymous | 11-Feb-2010 7:53 pm
i am glad they are considering the employees at the London office.
But no one seems to have mentioned the poor employees in the Gibraltar offices, they also have livelihoods to consider!
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Anonymous | 11-Feb-2010 8:21 pm
chorizo
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YesItsMe | 11-Feb-2010 8:29 pm
City Gent... that's rich considering the amount of shady people there are in the City! Gibraltar FSC has caught these people out - this kind of thing could happen anywhere and it's not fair that Gibraltar's reputation suffers because of a pair of crooks who got caught with their hands in the cookie jar!! And misspop makes another unfair generalisation. The majority of people with money in Gibraltar have made it through honest hard work - sounds to me like someone has a chip on her shoulder!! The Anonymous comment is the only logical post on this page so far. The Marrache's dodgy dealings will have put many innocent members of their office staff in very difficult positions. I hope the Marraches get their comeuppance.
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Dave Parting | 11-Feb-2010 9:12 pm
I find the sunny place shady people comment offensive. Why tar a small country with a brush because of two allegedly greedy brothers?
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Anonymous | 12-Feb-2010 8:13 am
I am glad to see that the Gibraltar authorities have taken such firm action and this should install confidence in the regulatory system.
As an offshore based professional it this type of news that give the rest of us a bad name.
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Neil | 12-Feb-2010 8:31 am
City Gent - you are a pr*ck.
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Anonymous | 12-Feb-2010 8:47 am
I also live in Gibraltar and I can assure you that the majority of the people are honest hard working individual trying to support their families.
One bad example should not be a reflection of the whole place.
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Anonymous | 12-Feb-2010 9:13 am
City Gent:
I am pretty certain that those in cloudy places have even more to be concerned and much less to be smug about.
The only shady people in Gibraltar as those sitting in the shade when its bright and sunny after working hard for a decent and honest living.
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