Three years in jail for two businessmen for faking their bankruptcy

The two responsible for a well-known Irish pub in Palma, located next to the Passeig Marítim, have been sentenced to three years in prison for feigning a situation of insolvency to prevent returning 102,000 euros that a woman had left them to start the establishment. The sentence would force both of them to be imprisoned because it values ​​both the amount of money defrauded, as well as the special situation of vulnerability in which the victim was left, who lost her home by not being able to face the mortgage and who suffers serious psychological consequences by the facts.

According to the facts that the sentence declares proven, the victim was a friend of one of the two defendants and lent 27,000 euros so I could expand the establishment. As he did not return the money, he filed a lawsuit and a court of First Instance forced this businessman to hand over the money in 2008. However, a year later, the Palma City Council closed the premises for a serious offense. The defendant told the victim that if he did not leave her more money, he would not be able to meet the expenses involved in being able to reopen and that she would lose all the money. The victim went to moneylenders and signed a mortgage on his home in order to collect another 45,000 euros and leave it to his friend.

With the two open debts, the affected returned to go to court to claim payment. Among other measures, he asked for the seizure of the rights to transfer the premises and an seizure of the businessman’s assets was ordered. That was when he launched a strategy to pretend to be insolvent with the other defendant, his brother. Both bought a company that was inactive and put a front man as administrator. This merchant took over the management of the pub fictitiously and the debtor pretended to be completely bankrupt.

The magistrate points out that the establishment is still open, at least it did until the pandemic and with remarkable success. As an indication of fraud, he values ​​the fact that the entire workforce remains the same.

Also key in the sentence was the statement of the tax advisor of the main defendant, who acknowledged that they spoke to him about the constitution of the fictitious society. The victim, represented by the lawyer Miguel Ángel Cardell, related how he went bankrupt as a result of these loans while the defendant “continued to live with all his comforts.” He also related that he lives about two hundred meters from the premises and that he saw how the businessman went every day to collect the box from the establishment. As a result of the events, he suffers a depression because “he cannot forgive himself for having fallen into this mess.” The sentence can be appealed before the Hearing.

“An emblematic place very well located”

The ruling highlights that the bar “is a very well located emblematic place that has always had a good clientele and good income.” The establishment, despite being closed due to an infringement of municipal licenses, has operated uninterruptedly for two decades and, in fact, has extended the rental of the premises for 25 more years, a sign, for the judge, that it is a good business.

– .