Supreme Court lowers the prison sentence for the former president of Pescanova from 8 to 6 years for manipulating accounts to attract investors

Together with the company, it must compensate the injured parties with more than 125 million euros

The Supreme Court (TS) has reduced the prison sentence handed down by the National Court against the former president of Pescanova Manuel Fernández de Sousa-Faro by two years, from 8 to 6, by acquitting him of the crimes of fraud, document falsification and applying an extenuation for undue delays, confirming the rest of the sentence for manipulating the accounts to attract investors.

Thus, in a ruling dated February 10, the Criminal Chamber ratified the conviction of Fernández de Sousa-Faro as the perpetrator of a continuous crime of falsifying the annual accounts in media competition with an also continuous crime of falsifying economic information. and financial, as well as for the crime of confiscation of assets.

The court also maintains that, jointly and severally with the Pescanova company, it must compensate the injured investors, both companies and individuals, with more than 125 million euros.

Pescanova is still facing the penalty handed down by the National Court, a fine of 21,600 euros, although she is now considered the author of a crime of falsifying economic-financial information and has been acquitted of the crime of fraud.

The magistrates of the Second Chamber also acquitted the other accused of the crimes of falsifying a commercial document and aggravated fraud, for which reason they also reduced their sentences.

Former financial directors Antonio Taboas and Carlos Turci, accounting directors Alfredo López Uroz and investor relations directors Joaquín Viña all go from 3 years and 6 months to 1 year and 3 months.

The former head of accounting Ángel González is reduced from 3 years and 6 months to 1 year; the former head of service Alfonso García, from 2 years to 1 year and 3 months; and the wife of the former president of Pescanova, Rosario Andrade, from 1 year to 6 months.

The convictions, as necessary cooperators of the crime of falsification in the annual accounts, of several executives of the company are also maintained, although they are imposed less punishment considering that they do not have the conditions, qualities or personal relationships that justify the guilt of the author.

ABSOLVES THE AUDITORS

In addition, the Supreme Court acquits the external auditor of Pescanova, the auditing company and, in terms of civil liability, the latter's insurer, considering that the former had a careless or inattentive conduct but not the malicious behavior that is required with respect to the crimes for which he was convicted.

They are the BDO auditor Santiago Sañé, who was sentenced to 3 years and 6 months; the BDO itself, which received a fine as Sañé's subsidiary civil liability; and Mapfre, also sentenced as a joint civil liability with BDO to compensate investors up to a certain amount.

In the same way, the Supreme Court exonerates two companies that had been convicted as necessary cooperators of the crime of seizure of assets because it understands that the acts carried out by natural persons were not for the direct or indirect benefit of those.

IRREGULAR PRACTICES OF THE DOME

The ruling of the National Court recounted irregular practices carried out by the former leadership of Pescanova, headed by Fernández de Sousa-Faro with the collaboration of the heads of the most relevant departments.

The ruling indicated that as a result of the financial crisis that broke out in 2008, the president of the Galician firm, in order to continue enjoying the bank financing on which Pescanova depended due to the investment effort exerted in previous years, planned, together with a group of people they trust, continue to obtain financing through a series of mechanisms or irregular practices.

Once this was achieved, he pointed out, another series of manipulations were carried out on the annual accounts or other official documents that reflected the financial situation of the company "to achieve positive results that did not correspond to the real situation and, after being officially published, made it possible to attract new investors and displace bank financing and its excessive commissions".