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)
Simon Lipert (Student-at-law and yes with Gib conn | 14-Feb-2010 3:25 pm
I must say that I am glad to see that trial without jury is coming along beautifully in the legal community. It was a step too far to proceed with criminal trials by judge alone but with all of your efforts we have byassed the trial without a skerrick of evidence being presented (other than the initial charges being laud) and many of you have jumped to sentencing ... I am impressed and by the way how many of you are card carrying star chamber members?
Clearly the FSC is doing its job, so will the courts and Gibraltar's reputation for honest dealings will be preserved through its regulatory bodies.
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Anonymous | 14-Feb-2010 4:57 pm
I am absolutely amazed by the comment from the London office of Marrache, as being nothing to do with Gibraltar, except by the brand association. The Senior Partner of the London firm is Isaac Marrache and he set up Gibraltar 30 years ago then he went over to London to set that one up, how can we have no link when we share the same boss it is utterly pathetic considering Stephen Daultrey has been struck off for dodgy dealing I marvel at his comments, it was not so long ago he visited the Gibraltar office to do business and spend some time with the staff there, he is constantly advising them and working closely with them on client issues and opinions.
As for Gibraltar, all firms act in the same manner the people concerned are good men and have been made an example of, I know there will be law firms all over the rock shredding evidence as we speak!
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Hug | 15-Feb-2010 8:12 pm
I know someone who had a trust fund with this branch and now it has really screwed things up financially for him. What happens now. If anyone has any legal advise for me please feel free to inform me cheers.
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rib owner | 16-Feb-2010 3:29 pm
i am surprised at all the fuse in Gibraltar and london over this matter. the issues were clear to be seen by everyone. Regulators, lawyers, staff and clients. Do people have short memories and can they not do internet searches? these lawyers republation was whiter than white and plain for everyone to see. Ask anyone in the know in Gibraltar about the Marrache's and co and i am sure they would have told you they were hard working and honest to the bone. I am sure all of their legal colleagues are totally surprised that the last weeks events.
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Anonymous | 16-Feb-2010 4:45 pm
Everyone mentions two brothers, but there is a third who was the senior partner. What has happened to him? or has he denied all knowledge, as he would! and what about others, like me that have lost money due to sticky fingers in the client account.
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Anonymous | 17-Feb-2010 4:09 pm
Every jurisdiction everywhere has its good and bad eggs. If these guys are found to have done anything wrong then all it will show is that Malta is the same as the rest of the world in this regard.
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Anonymous | 17-Feb-2010 4:10 pm
The third brother was not a senior in the firm, this position was altered some years ago for reasons I do not know.
As for the Company... The whole thing should be investigated. As far as I am concerned senior management couldn't have gotten away with everything without the direct or indirect assistance of at least some staff members. Unfortunatley everyone seems to turn a blind eye ... IF the allegations are true then they should be made examples of and hopefuly others in the business will thake the regulations more seriously!
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Gibraltarlawyer | 20-Feb-2010 6:45 pm
These people are alleged to have committed certain offences. They will be tried and the jury will decide based on the evidence - as per normal. In the interim there are many worried people who need to understand where they stand. I will be happy to hear from such people. I have been practising law in Gibraltar for thirteen years although I am not originally from Gibraltar,
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Anonymous | 23-Feb-2010 11:57 am
The longer Isaac stays away from Gib the longer his brothers will stay behind bars.
How can any court be expected to believe that Benji and Solly will not abscond if their brother refuses to return to face the music.
If he is any kind of a man he will return to help and support his brothers.
London llanito
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Anonymous | 23-Feb-2010 5:58 pm
With ref to the comment of the 17th Feb @ 4.10 I find this totally offensive that you even consider staff members to be involved. It's the Partners who are ultimatly responsible for the firm as it is their business, and staff have nothing to do with the alledged crime. Please remember that this is a PC based program and that the comments contained herein can be traced even if you post annoymously. so please do not mention staff again in this regard.
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