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)
Gib_Brightonian | 12-Feb-2010 10:42 am
City Gent - Firstly dont get me started on shadey dealings in the city, its you lot playing with out money that got us inteh state we are in now!!! At least our financial services keep an eye on the ball and dont let idiots like you ruin the country.
Secondly - You presume that because Gib is offshore so far away nobody keeps an eye on us. You have no idea how wrong you are. FSC on your door step breathing down your kneck every second of the day keeps everybody decent and honest on their toes and at the same times catches those who arnt.
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Anonymous | 12-Feb-2010 11:52 am
How quickly the the other international offices of this firm are jumping ship !
A week ago they were probably informing prospective clients that they are a multinational firm,now 'we are linked only by brand'
Is the London office not run by a third brother?
London llanito
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Anonymous | 12-Feb-2010 12:54 pm
There is any difference with the others law firms in Gibraltar. They all do the same and the FSC know that.
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Anonymous | 12-Feb-2010 3:13 pm
Good comments by all !
For whatever Gibraltar is, it is the staff i feel sorry for. Who is looking after their interests no one by the looks of things (and this is supposed to be a reputable law firm)
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Anonymous | 12-Feb-2010 4:29 pm
As has been said ....the London office is/was run by Issache Marrache - brother of Benjamin and Solomon and who has also been suspended by the Gibraltar courts. They have disgraced themselves.
The London office claim that they are innocent etc all comes a bit late in the day - as has been said they were proud to be part of an international network only a week ago. A claim still made on their website!
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Anonymous | 12-Feb-2010 5:20 pm
As one of many of the members of staff in the offices in Gibraltar I can say that no one is looking after our interests we have been left totally in the dark about whether we will get paid etc, it is a terrible time for us all!
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Anonymous | 13-Feb-2010 1:00 pm
I can see that the golden thread of innocent until proven guilty is still highly valued. Stop knocking them until someone actually proves that they have done something wrong. The staff have done nothing wrong, yet they are suffering and comments like anonymous and others are uncalled for. you show your ignorance of Gibraltar and its people. Grow up!
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misstruth | 13-Feb-2010 8:48 pm
how pathetic some people are....
As if these things dont happen in every jurisdiction....
barings bank/bcci/madoff... hello? why does gibraltar have to pay the price for a couple of crooks? IT HAPPENS EVERYWHERE. Lets just pray for those poor employees in Gibraltar who wont know how to live and also lets not forget the victims who have lost all that money they invested with the law firm....
why dont we focus on that rather than slag off Gibraltar?
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ex-marrachepa | 13-Feb-2010 11:46 pm
I worked for Marrache & Co Gibraltar for six years, working for both Isaac and Benji, and knew Solly and the rest of the family. I am shocked and saddened to read these stories and really feel for all my friends and colleagues who were still working there.
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Nat | 14-Feb-2010 11:12 am
To all the Marrache staff, the rest of us in Gib are thinking of you and we hope you get something soon.
Everyone is innocent until PROVEN guilty we should try not to jump to conclusions until all of the facts are out there. It wont help anyone to make wild accusations as people's livelyhoods are at risk.
Its funny how outsiders always think that offshore jurisdictions are shady. The city ladies and gents of 'onshore' jurisdictions around the world have pratically brought the globe to its knees with selfishness, greed and white collar crime so there is utterly no place for finger pointing from them.
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