(Text & photo: Gibraltar Chronicle) In a dramatic development following the announcement on Tuesday that the law firm had run into trouble (see CP item here) detectives from the Royal Gibraltar Police Financial Unit raided the offices of Marrache & Co yesterday and arrested two of the firm’s senior figures, brothers Benjamin and Solomon Marrache, on suspicion of false accounting. Several other properties connected to the firm were also searched. Both men were last night assisting police at New Mole House station. As this edition went to press, neither of the men had been charged with any offence. Hours earlier at a closed session in the Supreme Court the Chief Justice Anthony Dudley moved to suspend Benjamin Marrache and his brother and senior partner Isaac Marrache, who was away from Gibraltar. He subsequently stayed the suspension of Isaac Marrache pending an appeal to the Court of Appeal which sits here next week.>
It is not known whether the Chief Justice, who was acting in his capacity as head of discipline for the profession, will appoint a caretaker committee of lawyers from various firms to oversee clients’ interests as is often the case in such circumstances. Freddie White of Grant Thornton has already been appointed to administrate the firm’s finances.
The dramatic developments came just hours after the Financial Services Commission [FSC] alleged that an investigation into the law firm’s affairs had disclosed “serious and persistent” breaches of Gibraltar’s financial laws. Initial estimates were that some £10m has to be accounted for but the figure may well be much higher. On Monday the FSC withdrew the licences of seven entities linked to the firm, which is one of Gibraltar’s main law firms and has a prominent international profile.
The FSC also withdrew the licences of both Benjamin and Solomon Marrache. On Tuesday Benjamin Marrache told the Chronicle that the firm would appeal the FSC’s decision and work to resolve any issues. But by yesterday afternoon, the police had moved in and the investigation had taken a different turn.
During the afternoon, officers from the Financial Crime Unit of the Royal Gibraltar Police executed search warrants at various private and commercial premises linked to the law firm, including its principal office on Cannon Lane.
The RGP confirmed that two men had been arrested as a result of an investigation by the Financial Crime Unit. “Two men aged 46 and 47 years have been arrested on suspicion of false accounting and are currently assisting police with their enquiries,” the RGP said in a statement. “The investigation is ongoing and police are working closely with the Financial Services Commission.”
The police did not name the two men but their identity was confirmed to the Chronicle by several senior sources with close knowledge of the case. Benjamin Marrache is the managing partner at Marrache & Co, while Solomon Marrache is the firm’s finance director. They are represented by lawyer Keith Azopardi.
It is not known whether the Chief Justice, who was acting in his capacity as head of discipline for the profession, will appoint a caretaker committee of lawyers from various firms to oversee clients’ interests as is often the case in such circumstances. Freddie White of Grant Thornton has already been appointed to administrate the firm’s finances.
The dramatic developments came just hours after the Financial Services Commission [FSC] alleged that an investigation into the law firm’s affairs had disclosed “serious and persistent” breaches of Gibraltar’s financial laws. Initial estimates were that some £10m has to be accounted for but the figure may well be much higher. On Monday the FSC withdrew the licences of seven entities linked to the firm, which is one of Gibraltar’s main law firms and has a prominent international profile.
The FSC also withdrew the licences of both Benjamin and Solomon Marrache. On Tuesday Benjamin Marrache told the Chronicle that the firm would appeal the FSC’s decision and work to resolve any issues. But by yesterday afternoon, the police had moved in and the investigation had taken a different turn.
During the afternoon, officers from the Financial Crime Unit of the Royal Gibraltar Police executed search warrants at various private and commercial premises linked to the law firm, including its principal office on Cannon Lane.
The RGP confirmed that two men had been arrested as a result of an investigation by the Financial Crime Unit. “Two men aged 46 and 47 years have been arrested on suspicion of false accounting and are currently assisting police with their enquiries,” the RGP said in a statement. “The investigation is ongoing and police are working closely with the Financial Services Commission.”
The police did not name the two men but their identity was confirmed to the Chronicle by several senior sources with close knowledge of the case. Benjamin Marrache is the managing partner at Marrache & Co, while Solomon Marrache is the firm’s finance director. They are represented by lawyer Keith Azopardi.
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