Mansion Group Wins Second High

While Mansion Group closed shop in 2023, ongoing legal disputes with former CEO Karel Mañasco continue to make headlinesImage Source: Shutterstock.com

In a significant legal development, theGibraltar Supreme Court ruled in favor of Mansion Group, ordering its former chief executive officer, Karel Mañasco, to pay over€2.5 million($2.76 million) and£127,000($166,200) to the now-defunct company. The case centers on allegations that, as CEO, Mañasco misappropriated company funds through various payments to third-party vendors that provided no associated services in return.

The Operator Had a Troubled History

Mansion Group confirmed its closure in October 2023, announcing the shutdown of its B2C brands casino.com and MansionCasino.com. Regulatory challenges caused the company to pull out of the UK and Ontario markets, significantly reducing its market presence. The ensuing legal battle with former CEO Mañasco appears to have been the nail in the coffinfor the struggling operator.

The ruling now serves as the second major legal setback for Mañasco in the continued fight with Mansion Group, which also led to a €5 million worldwide asset freezeorder against the former CEO. This dispute started at the beginning of 2024 over allegations by Mañasco against Mansion Group for operating without proper licenses, violating regulations, and failing to pay taxes in several countries.

Despite Mañasco’s attempts, the court has consistently ruled in favorof Mansion Group. In August, the court declared that the former CEO had failed to provideconcrete evidenceto support his accusations against Mansion Group. The judgment denied Mañasco’s applications to amend his defense and further dismissed his claims, which were part of his counterclaim.

The Legal Drama Will Likely Continue

This newest chapter in the ongoing legal battle saw the court conclude that Mañasco had authorized paymentsamounting to €2.5 million to White Wizard Media Limited, a company Mansion Group claimed did not render any services in return for the funds. Besides that, the court heard another claim of a payment of £127,000 to KM Accountants for consultancy services invoiced by Aventador Media Limited.

The court ordered Mañasco to providesufficient explanationsfor the disputed payments by 15 May. Failure to comply would result in his defense and counterclaim being struck out. Despite securing a witness statement, Mañasco’s responses were deemed inadequate and inconsistent. This verdict resulted in Mansion Group winning the judgment for the entire claimed amount.

Mañasco has declared his intention to appeal the judgment, continuing this lengthy and contentious legal battle. However, this newest development marks another victory for Mansion Group in its effort to recover what it describes asill-gotten gains. The case will likely continue to draw attention due to the high profile of the allegations and the substantial sums involved.