Gibraltar Court Issues Freezing Order on Former Mansion CEO’s Assets Worldwide

Karel Christian Mañasco, former CEO of the Gibraltar-based gaming firm Mansion, has faced a five million pound freezing order from the Chief Justice ruled against Mañasco’s assets worldwide.

Claim for damages:

The Gibraltar court has activated this draconian judiciary mechanism following the claims for damages filed by the company. Mansion claims that the extent of damages sustained by the company amounts to more than 2.3 million pounds and almost 3 million euros. According to local media GBC News, Mansion’s operation were exposed to damages by the misconduct of its former leader facing allegations of using company money to obtain luxury cars and high value watches and dishonestly availing of his position to collect significant personal bonuses and allowances.

Breaching corporate duties:

Karel Christian Mañasco was the CEO and actually acted as CFO of the Gibraltar-based gaming firm. However, Mansion suspended him in September 2021 and commenced a disciplinary investigation. In 2022, the company brought the case before the court claiming that  Mañasco had violated the company regulations and had committed an infringement of his corporate duties. The firm claims damages amounting to almost 3 million euros, while Mañasco strongly rejects the Mansion’s claim.

Unauthorized payments:

The claim for damages are based on allegations of unauthorized payments and transactions affecting company’s financial standing.  The Gibraltar-based firm alleges the breach committed by bonus payments of nearly £ 822,000 in personal expenses, unauthorized payments of a total of more than 2.5 million euros to a suspicious company located in the Marshall islands, as well as almost 250,000 pounds spent in credit card transactions.

Personal benefit:

The company also alleges that Mañasco bought a Ferrari, three Range Rovers, a Mercedes Benz, fifteen luxury watches, and the jewelry worth £50,000. The company argues that these assets were not bought for the company’s benefit. Therefore it sought the order of Chief Justice to freeze the Mañasco’s assets worldwide on the grounds that the assets may disappear from the accounts used for their deposit.

Low standards of morality:

Mañasco decisively rejects the company’s allegations arguing that his former position of Mansion’s CEO  authorized him to order all transactions and make acquisitions and purchases of items and that his conduct was in the interest of his former company. Mañasco disputed the freezing order.

But the Chief Justice, Anthony Dudley, ruled that the Mañasco’s actions could be considered to have exercised low morality norms and dishonest conduct. The judge explained that the asset freezing order is an extremely stringent measure. He described it as a court’s ”nuclear weapon” used in drastic cases but added that such power has been justly weighed and conveniently exercised in this case.