April 10, 2021

Sentenced to one year and seven months in prison the former CEO of Banco de Valencia | Economy

Sentenced to one year and seven months in prison the former CEO of Banco de Valencia | Economy

The National Court has sentenced to one year and seven months in prison for a continuing offense of unfair administration to the former delegate delegate of the Bank of Valencia Domingo Parra for having acted against the interests of the entity by granting a loan to a company with which he and his wife, now deceased, were related. Parra unilaterally authorized the loan to the company Pegoliva SL for the construction of houses, money that was never recovered. He did it "to the detriment of the interests" of Banco de Valencia, according to the Central Criminal Court.

Judge José María Vázquez Honrrubia imposes the penalty requested by the Prosecutor for the defendant and applies two mitigating factors, the repair of damage, having entered 330,000 euros, and the confession, for having recognized the facts during the trial that was held at the end of January.

The ruling states that Parra must compensate 395,000 euros to the FROB and, failing that, to Caixabank as successor to the Bank of Valencia, an entity that was intervened by the Bank of Spain at the end of 2011, jointly and severally with those responsible for lucrative. In addition, it will have to pay another 114,525 euros for the amount that remains to be recovered from an ICO loan that Parra granted without having the risk department of the entity. In total, therefore, the compensation amounts to 509,525 euros, to which the interest will be added.

The magistrate reports that Domingo Parra held the position of CEO of Banco de Valencia from July 1994 until October 2001, when he was dismissed. The entity granted on September 27, 2007 to the company Pegoliva SL a developer loan amounting to 4,910,429 euros aimed at the construction of 25 homes and their annexes and to enable sales and subrogation of future acquirers.

Several trials against the dome

The Bank of Valencia it was sold in 2012 to La Caixa for one euro, after receiving public money for an amount of around 6,000 million euros (998 million until May 2012 and 4,500 million in the intervention of the Bank of Spain). His former managers have been recently tried in the National Court for alleged unfair administration and misappropriation. The Anticorruption Prosecutor's Office requested four years in prison for Parra in the framework of that procedure. The trial was seen for sentencing on January 10. The dome of Banco de Valencia still has pending more trials for alleged unfair administration.

"Domingo Parra unilaterally and to the detriment of the interests of the banking entity disposed of funds above those stipulated and against the criteria of the Department of Risks, as well as personally authorized an ICO loan without the personal guarantees required by the aforementioned Department that would have made possible their recovery, in clear detriment of the interests of the Bank of Valencia, "the magistrate said in the ruling, adding that both the initial loan and the ICO loan remained unpaid.

Friendship with the family

The magistrate also points out that both Domingo Parra and his wife, now deceased, were economically linked to the companies that benefited from the funds obtained through this loan (Edioliva Promociones SL and Mapose SL) and maintained a friendly relationship prior to the made with the Pons Sivera family, owners of Pegoliva SL.

The resolution condemns in a condition of lucrative third parties the company Pegoliva SL and subsidiarily Salvador, Juan José and Isabel Pons Sivera, with joint and several liability, to pay the FROB or, failing that to the Caixabank entity, the 509,525 euros plus interest. Of this amount, indicates, the 330,000 euros paid by Parra will be deducted, so the amount to be paid is 179,525 euros.

The ruling describes the entire operation and states that between 2007 and February 2011, Pegoliva SL disposed of 4.4 million euros of the developer loan. Initially, he continues, the provisions were made in accordance with those stipulated and authorized by the Risk Committee, solving the company's liquidity problems as a result of the absence of sales of the promotion in accordance with the normal channels of bank contracting, without the unilateral action of any bank manager in this regard.

On the contrary, notes, as of November 2010, Domingo Parra, using the powers available to him as CEO, made a series of actions "contravening the risk criteria of the corresponding departments, against the interests of the entity banking and for the benefit of both the borrower company to which they joined economic and friendship interests, as well as himself and his wife. "

The next 14 February was to begin -has been postponed- another of the lawsuits against the Banco de Valencia expo for allegedly unfair administration in operations, in this case, with the company Maremar in 2007. Some facts that according to the Prosecutor's Office caused a loss of more than 29 million euros, and for which the former CEO faces four years in prison.


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