Ex-Castellón chief Fabra sentenced to four years for tax fraud

Provincial court convicts Popular Party veteran on four charges worth 700,000 euros

LORENA ORTEGA Castellón 25 NOV 2013 – 14:54 CET

Carlos Fabra, the former chief of Castellón province who became famous for building a planeless airport featuring a large statue in his honor, has been sentenced to four years in prison for tax fraud.

The anticorruption public prosecutor had requested an eight-year jail sentence for the Popular Party (PP) politician on four counts against him related with his not declaring income of almost two million euros to the tax office between 1999 and 2004 – a fraud worth almost 700,000 euros.

The Castellón provincial court absolved him of two other charges of influence peddling and bribery.

Fabra’s ex-wife was also sentenced to two years in prison on two other tax fraud charges.

The sentence is the culmination of a 10-year investigation into the man who headed the provincial council of Castellón, part of the Valencia region, between 1995 and 2011.

In the last session of the trial in October, the public prosecutor considered Fabra’s responsibility proven and emphasized the accusations of tax fraud: “He is not just any fraudster, he was president of the provincial council and while he demanded taxes he was committing fraud in the background.”

The sentence, which was made known on Monday, absolved the businessman who reported Fabra and his ex-wife of crimes of influence peddling and bribery. The ex-senator Miguel Prim, also charged with influenced peddling, was similarly cleared.

via Ex-Castellón chief Fabra sentenced to four years for tax fraud | In English | EL PAÍS.

The law finally catches up with former Castellón cacique Fabra

Bringing the PP baron to court has been like running an obstacle course

 Castellón 2 OCT 2013 – 19:23 CET

The trial of former Castellón provincial chief and powerful Popular Party (PP) baron in the region of Valencia, Carlos Fabra, for alleged influence-peddling, bribery and tax fraud began on Wednesday, a decade after the first accusations were lodged against him.

In its written allegations, the popular prosecution in the form of the consumer protection group Unión de Consumidores described Fabra as a “magician in obtaining illegal ends.”

Carlos Fabra leaving the provincial High Court of Castellón on Wednesday. / DOMENECH CASTELLÓ (EFE)

Carlos Fabra leaving the provincial High Court of Castellón on Wednesday. / DOMENECH CASTELLÓ (EFE)

Unlike on other occasions he has appeared in court the 67-year-old Fabra, who faces a jail sentence of up to 13 years and a fine of 1.9 million euros if found guilty, was not accompanied by anyone from his party.

Prosecutors have accused Fabra and his former wife, María Amparo Fernández, of defrauding the Treasury of some 700,000 euros between 1999 and 2003. However, Fabra’s lawyer on Wednesday argued that tax inspectors who handled the case could not be considered as independent expert witnesses as they are administration assistants of the Anti-Corruption Prosecutor’s office.

The public prosecutor also claims Fabra acted as an intermediary for third parties with public administrations and accepted money for doing so.

The three magistrates conducting the trial are the same ones that attempted to have the accusation of taking bribes lodged against Fabra thrown out. Neither the state nor the public prosecutor have questioned their fitness to preside over the trial.

Since the case began in December 2003 — following accusations by a businessman that Fabra had taken bribes to intervene with the Agriculture Ministry to obtain permits — nine judges and four prosecutors have been involved in it. While the investigation proceeded, Fabra continued in his post as Castellón provincial chief, handling public money and presiding over the PP’s affairs in his particular fiefdom.

Part of the public’s money went to build an airport at Castellón, which has never been used as such, with the facilities dominated by a huge statue of Fabra himself. That was just one of several pharaonic monuments to human folly and hubris that marked a boom period in the region fueled by a massive real estate bubble.

During that period no one in the PP demanded that Fabra account for the accusations lodged against him. The head of the PP and now prime minister, Mariano Rajoy, at one point lauded Fabra as an “exemplary citizen.”

Fabra even tried to prevent the distribution of newspapers that had reported on the case and the judge who eventually formalized the accusation against him, Jacobo Pin, felt the need to seek the protection of the General Council of the Judiciary (CGPJ), the legal watchdog, after claiming that the Castellón Provincial High Court, the president of which was a personal friend of Fabra, had tried to put pressure on him to drop the case. Pin’s complaint went all the way to the Supreme Court, who gave the magistrate “total freedom” to proceed with the case.

After the Castellón Provincial High Court in 2010 threw out four of the five tax fraud charges against Fabra because they had exceeded the statute of limitations, it was again the Supreme Court that intervened to over-rule that decision.

Members of Fabra’s family were also included in the investigation after a report found that it had quadrupled its combined wealth in five years, but eventually only his former wife was formally accused. Fabra himself won a major prize in the national lottery no less than four times. One way of laundering illegally obtained money is to purchase winning lottery tickets.

Fabra has denied all the charges against him and at one point defended himself by saying: “I have never personally benefitted from my position as provincial chief of Castellón or as president of the Popular Party in the region. My public duties have never brought me any gain or revenue or than my official remuneration.”

via http://elpais.com/elpais/2013/10/02/inenglish/1380734613_504452.html

Camps and Costa found not guilty of corruption by Gürtel jury

Former Valencia PP chiefs cleared of wrongdoing over receipt of tailored suits

MARÍA FABRA / IGNACIO ZAFRA – Valencia – 25/01/2012

The nine-member jury in the corruption case against former Popular Party PP regional premier of Valencia, Francisco Camps, and his co-defendant, ex-PP secretary general in Valencia, Ricardo Costa, returned a not guilty verdict by five-to-four late on Wednesday after three days of deliberation.

Camps and Costa were accused of receiving gifts from the Gürtel network, a ring of businessmen who bribed Popular Party officials in Valencia, Castilla-La Mancha and Madrid in return for public contracts worth millions of euros. Francisco Correa, the jailed alleged ringleader of Gürtel, gave evidence in the trial against Camps and Costa.The main piece of evidence in the case were tailored suits that anti-corruption prosecutors claimed had been gifted to Camps. The former regional premier always maintained that he had paid for the suits, despite there being no record of money changing hands.In delivering its verdict, the jury said it had reached the conclusion that neither Camps nor Costa received gifts in an official capacity because of their posts and that it was not proven that the suits were paid for by members of the Gürtel ring.The jury foreman said there was “no accreditation that Camps did not pay for the clothes.” The testimony of Isabel Jordán – who was heard on tape in the court saying she had seen a 30,000-euro bill for Camps suits in a Gürtel-related companys accounts – and of José Tomás, the tailor at the center of the case, did not sway all jurors.However, the Valencia PP has not yet shed Gürtel from its back. The Valencia High Court is still investigating a wide range of crimes, including illegal party financing, bribery and corruption, in which Camps former deputy, Vicente Rambla, Costa and several other PP members are implicated.The Gürtel case broke in 2009 when High Court Judge Baltasar Garzón blew the lid on the network and anti-corruption investigators implicated Camps. Garzón is currently being tried in the Supreme Court for the use of wiretaps to monitor conversations between jailed Gürtel suspects and their lawyers.

via Camps and Costa found not guilty of corruption by Gürtel jury · ELPAÍS.com in English.

Ex-Valencia premier makes last plea of innocence

Jury to get the “suit-gate” case on Monday.

M. F. / I. Z. – Valencia – 20/01/2012

Former Valencia regional premier Francisco Camps made a final plea of innocence Friday as jurors were set to begin deliberating next week over whether he and another ex-Popular Party PP official received dress suits and other gifts from members of the Gürtel corrupt businessmens network.

“I am innocent and I have come here looking for justice from my trusting and committed fellow citizens,” Camps said after closing arguments in the case.Camps went on trial in Valencia High Court on December 12 along with former local PP secretary general Ricardo Costa. Judge Juan Climent on Monday will come up with a jury verdict form with questions the nine jurors can answer.To be found guilty, seven must vote in favor; an acquittal will only need five votes. If there is no agreement among the panel, the judge will release the jury and order a new trial. Camps and Costa face fines of up to 41,000 euros if they are found guilty.

via Ex-Valencia premier makes last plea of innocence · ELPAÍS.com in English.

Supreme Court clears way for Fabra to face fiscal charges

Former provincial leader of Castellón thought to have defrauded 1.5 million euros over five years

MARÍA FABRA – Castellón – 01/12/2011

The Supreme Court has rejected the prescription of four of five financial crimes levelled against the former leader of the Castellón provincial government, Carlos Fabra. In a court order published on Thursday, the magistrates admitted the prosecution’s arguments against the prescription, determined by the Castellón High Court, paving the way for Fabra, a PP heavyweight who was very visible during Mariano Rajoy’s prime-ministerial campaign, to be tried for fiscal crimes, influence peddling and bribery.

According to tax inspectors, Fabra and his ex-wife, María Amparo Fernández, defrauded 1.5 million euros over five years. The PP provincial chief also faces charges lodged by local businessman Vicente Vilar, who told authorities that Fabra was paid “millions of euros for political favors.”

Anti-corruption prosecutors are seeking a 15-year jail term for Fabra, while the people’s prosecutor, representing the Consumers’ Union, wants a sentence of 20 years and nine months.

via Supreme Court clears way for Fabra to face fiscal charges · ELPAÍS.com in English.

Calatrava paid 15 million euros for non-existent Valencia towers

Regional government insists scheme is a useful investment; prosecutors say there is no proof of wrongdoing.

The Valencia government, then presided by the Popular Party’s (PP) Francisco Camps, who later resigned and awaits trial for his part in the Gürtel corruption scandal, paid architect Santiago Calatrava over 15 million euros for three skyscrapers near the Ciudad de las Artes y las Ciencias that will likely never be built, the provincial court has found.

The payment was confirmed by regional government spokeswoman Lola Johnson, who justified the payments for the project as a “property asset” that can be used or sold. Prosecutors will not pursue the case, brought by deputies of Esquerra Unida, because there is no evidence of misappropriation of public funds. Johnson noted that work has been halted on the project but that “at any moment the economic situation could bring us to a point where we decide to move ahead or to sell.”

Calatrava’s office declined to comment. The court report states that the architect received an advance payment of 2.6 million euros on September 30, 2005, 137,000 euros on August 30, 2006 for models and plans of the towers, and two later payments of 6.2 million euros each for pre-project and drafting work, a total of 15.2 million. The Socialist regional spokeswoman for infrastructure, Eva Martínez, asked current PP regional premier Alberto Fabra to begin legal proceedings to recover the money from Calatrava.

JOAQUÍN FERRANDIS – Valencia – 09/11/2011

via Calatrava was paid 15 million euros for non-existent Valencia towers · ELPAÍS.com in English.

Indicted Camps to get an assistant and a driver, paid with public funds

Francisco Camps, the former Valencia premier who resigned after he was indicted on corruption charges, will get a chauffer, two bodyguards and an assistant paid for with public money.

On Monday, the Valencia government’s official gazette (DOCV) published the administrative order, which names Camps’ former secretary Susana Fayos Cabañero as his new assistant.

“It is not that he asked for them, it is what the law provides,” said Serafín Castellano, chief of staff to Valencia’s new premier Alberto Fabra.

Camps, who is scheduled to go to trial in the fall for allegedly accepting dress suits and other gifts from businessmen in the corrupt Gürtel network, will also take a seat on the region’s judicial council (CJC), the legal advisor to parliament. Some have questioned whether Camps could hold his seat in parliament as a PP deputy and sit on the CJC, but council sources said that the two positions are compatible.

Antonio Hernando, deputy campaign manager for the Socialists, said that it was “an embarrassment” and “a joke” to allow someone who is going to trial on criminal charges to become a legal advisor. Camps is currently free on 55,000 euro bail.

In a related issue, another Gürtel case defendant, Antoine Sánchez, said he is readying to seek a plea bargain. Sánchez is cousin to Gürtel mastermind Francisco Correa and allegedly was part of the cover-up of the multi-million-euro kickback ring.

via Indicted Camps to get driver, assistant paid with public funds · ELPAÍS.com in English.

Sparks fly over Valencia chief’s resignation

A day after Francisco Camps stepped down as Valencia’s regional chief, both the Socialists and Popular Party (PP) riled each other over corruption and public image. The opposition called on Socialist candidate Alfredo Pérez Rubalcaba to follow Camps’ example and stand down, while the Socialists accused the PP of being afraid that the indicted Camps would reveal the names of “his dangerous friends.”

On Thursday, Camps’ lawyer filed a motion with the Valencia High Court stating that his client will go to trial on bribery charges over allegations that he accepted dress suits from the corrupt business network known as Gürtel.

Camps resigned on Wednesday after declining his party’s offer to remain as regional premier if he pleaded guilty and paid a fine. PP leader Mariano Rajoy wanted to avoid an embarrassing trial as he prepares for his third run in the prime minister’s race.

Esteban González Pons, the PP spokesman, said that Camps made a decision of “great political value” after consulting with his family and without “the pressure of Mariano Rajoy.”

“Rubalcaba should take a sip from Camps’ medicine bottle,” Pons said, in reference to the so-called Faisán case. The PP has been calling for Rubalcaba, who has not been charged, to step aside as the Socialist candidate after three law enforcement officers were indicted in an alleged ETA tip-off case that saw a 2006 police raid botched during his tenure as interior minister.

Antonio Hernando, Socialist deputy campaign manager, called Pons’ statement “clearly unethical” and said the PP was interested in keeping Camps “quiet so no one can find out who his dangerous friends are in the Gürtel case.”

Castellón Mayor Alberto Fabra is expected to be sworn in on Tuesday as Camps’ successor after he was selected by the Valencia PP committee.

via Partisan sparks fly over Valencia chief’s resignation · ELPAÍS.com in English.

Valencia regional premier Francisco Camps resigns

Valencias embattled premier Francisco Camps resigned as regional chief on Wednesday after coming under pressure from his own Popular Party PP to plead guilty to charges that he accepted expensive suits as bribes from a group of corrupt businessmen.

“I voluntarily offer my sacrifice so that Mariano Rajoy can become the next prime minister,” Camps told a news conference, in reference to the PP leader.Saying that he is the victim of a “personal campaign” that had been waged against him, Camps told reporters: “I am leaving with less than I came with.”

The surprise resignation came one day after Rajoy and other PP officials were said to be negotiating with the 48-year-old premier to plead guilty before the Valencia High Court and avoid trial on charges that he accepted dress suits and other accessories worth around 14,000 euros from businessmen from the so-called Gürtel network, who allegedly secured a number of valuable contracts in Valencia.

Camps was reelected on May 22 to a third term by a substantial margin over his opponents.

On Friday, Valencia High Court Judge José Flors indicted Camps along with Ricardo Costa, the former PP secretary general in Valencia; Víctor Campos, the former deputy regional premier; and Rafael Betoret, the regions former tourism chief. Both Campos and Betoret pleaded guilty before the High Court ahead of Camps news conference.

Camps was also expected to make the same plea in effort to save his regional post seat, but later in the day his lawyers postponed his appearance before Judge Flors.”Those who attack me today will end up on the losing side,” Camps said, adding that he will fight the improper bribery charges at trial.Costa was also expected to plead guilty but at the last moment on Wednesday said he would not do so unless Camps followed suit.The so-called “suit-gate” affair, and Camps subsequent indictment, had been one of the biggest political thorns for Rajoy and the PP as they prepare for upcoming general elections.

When the charges first surfaced in 2009, Camps had always denied that he had received the dress suits, explaining that he paid for his own clothes. But days before Fridays indictment, Camps acknowledged that he received the accessories in his capacity as head of the PP party and not in his elected position as regional premier. However, Flors rejected that argument, saying that both jobs are “indivisible.”Ramón Jáuregui, the head of the prime ministers office, said that Camps decision was “coherent” and wished him “the best” in his personal life. Earlier in the day, Jáuregui had said that Camps could not stay on as regional premier if he pleads guilty.

via Valencia regional premier Francisco Camps resigns · ELPAÍS.com in English.

“I never ask for a receipt when I pay”

Valencia chief offers series of excuses for lack of proof in Gürtel corruption case

The regional premier of the Valencian region, Francisco Camps, has reason to celebrate his re-election at the polls two Sundays ago, despite being dogged by a corruption scandal that will not go away.

But if his constituency was willing to overlook the possibility that he accepted expensive gifts from a business network in exchange for lucrative government contracts, the courts are not.

Camps is just one step away from sitting in the dock over the Gürtel case, an extensive bribes-for-contracts scheme run by a businessman with close links to the Popular Party (PP), to which the Valencian premier belongs. The 48-year-old politician, who has headed this Mediterranean region since 2003, will be tried for allegedly accepting tailored suits from Álvaro Pérez (aka “El Bigotes”), the chief of the Gürtel network in Valencia, where the ring was awarded contracts worth millions of euros and apparently also helped the regional PP secure illegal funding.

On May 20, 2009, Camps had to answer questions from a judge and from the anti-corruption attorney’s office. What follows is a summary of the interrogation.

Judge. Do you have a special relationship of friendship with Álvaro Pérez?

Camps. No, his relationship throughout all these years has been with the party. He is the person who organized party events, and my relationship \[with him\] always centered around big party events in the Valencia region, because I always like to supervise the design, the concept, the podiums, the lighting, in order to lend a air of modernity to the party events. The party confided in him during these years, and that is the only relationship I have had with him.

J. It seems that, following instructions from this man, or else in his company, you went to an establishment in Madrid to order some clothes. Is this correct?

C. Well, at one point ? it must have been during a party meeting ? he said he knew someone in a Madrid store who had a tailor’s shop, and who adapted ready-made suits that fitted quite well for a very good price. One day when I was in Madrid, I dropped by the store, met Mr Tomás, introduced myself, and that is how it happened.

Prosecutor. You say you used cash to pay. Do you have any receipts or documents to prove that you paid in cash?

C. I paid and I took the suit home. And if nobody asked me for the suit back, it’s because I paid for the suit that I took home.

P. And you never requested a receipt, given your position, in the event that one day you might need it?

C. That’s precisely why. For many years now I have never asked for a receipt when I pay for things so people won’t think I’m later charging it to the public accounts. That’s also why I don’t use a credit card, ever. My wife does. (…) I’ve occasionally taken taxis in Valencia and obviously I never asked for a receipt, like many public servants or people who work for companies do, so that nobody will think that there is some kind of account that pays for suits, or coffees or anything else.

Defense attorney. Why don’t you use your personal credit card, you could have gone to Forever Young (the tailor’s shop) and paid with that?

C. Because I never do, because it works out better at home like that, and because, like I said, I think that in the collective imagination, for politicians to use credit cards makes it seem like the card was linked to an expenses account.

D. So you don’t want people to see you using the card because of an image issue?

C. Yes. In the end, you’re taking decisions about your image, aren’t you? The way you dress, the way you are, the way you behave.

IGNACIO ZAFRA – Valencia – 30/05/2011

“I never ask for a receipt when I pay” · ELPAÍS.com in English.