On the run, U.S. financier finds Spanish refuge

 

He's wanted for contempt of court in Arizona. He is under investigation by Italian police over his connection with an international bond scandal exposed by Reuters in August and totalling at least $500 million (320 million pounds). And he is named as a key player in one of the first criminal indictments following the collapse of Iceland's economy. But last week you could find David Spargo in a holiday resort on the Spanish island of Majorca. He's a regular at La Batucada cocktail bar, where he might be drinking anything from a cocktail to a beer or whisky. Locals say he also enjoys playing on the 95-euro-a-round (81 pound) Alcanada golf course, which overlooks the sparkling Mediterranean. Since he arrived in Majorca early this year he has even tried to issue more bonds, one source told Reuters. Spargo's case shows how tough it is for regulators and law enforcement agencies to track and punish alleged financial crimes across borders. Networks of 'shell companies' -- paper-only firms with few real operations -- make it hard enough to identify suspects. Even if regulators can identify them, they are often hard to bring to justice. Spargo may be of interest to officials in at least four jurisdictions around the world but police and civil guard officials on Majorca said they were unaware of the fraud investigation. The 44-year old American is sought by U.S. Marshals for failing to repay $5.5 million to investors in Texas and Virginia who had bought bonds issued by his company. But because the charges against him are civil ones, the United States is not able to extradite him and the U.S. embassy in Madrid says they are not aware of Spargo's presence in Spain. Iceland and Britain (whose top financial services regulator recently called $500 million of bonds Spargo issued in 2008 a "fraudulent instrument") have also not tried to extradite him. A prosecutor in Italy declined to say whether authorities had tried to extradite anyone in connection with the case. "There are likely to be hundreds of suspected white-collar criminals who have moved to other countries and are now living off the proceeds from their alleged crimes," says Andrew Gordon, forensic services partner at accountants PricewaterhouseCoopers (PwC). Police in the City of London say more and more criminals are trying to hide their operations in different countries, using myriad bank accounts to siphon off the profits. Spargo himself denies any fraud. "A lot of your information is extremely incorrect," he told a Reuters reporter from the balcony of his second-floor apartment on November 28. "You'll find out in the next three days."

Spanish royal family hit by fraud scandal

 

The once squeaky-clean Spanish royal family has become immersed in a growing fraud scandal that reveals how members of King Juan Carlos's family may have cashed in on the monarchy's good name. At the centre of the scandal is the king's son-in-law Iñaki Urdangarin, a former Olympic-medal-winning handball player who became the Duke of Palma after marrying Juan Carlos's sporty daughter, the infanta Cristina. Urdangarin and his business partners are the subject of daily leaks from a fraud investigation involving millions of euros of public money as Spain's royal family struggles to hold on to its popularity. Police have raided the offices of his private companies and of a foundation he once presided over, taking away documents. El País newspaper reported this week that prosecutors believe Urdangarin, who has not been charged with any wrongdoing, will be named as a formal suspect in the case within two months. That could be a first step towards formal charges being placed. The royal palace, meanwhile, added fuel to the scandal this week by suggesting Juan Carlos planned to cut the official royal family down to a nuclear core – in effect casting off his son-in-law and daughter. On Thursday morning the palace press office appeared to have received a royal ticking off and publicly backtracked, saying "it deeply regretted having contributed to the fact that some media outlets reported this erroneously". Urdangarin himself, who now works for Spain's Telefonica phone company in Washington DC, has said he is innocent. "When I know the details of the investigations being carried out … I will be able to comment on their contents," he said last month. "My professional behaviour has always been correct." Queen Sofia, meanwhile, has showed public support for her beleaguered daughter and son-in-law, allowing the latest edition of Hola magazine to publish pictures of her visiting them at their home in the US. Speculation in Spanish newspapers has included predictions that Urdangarin will drop his aristocratic title so he can continue as a businessman or that Cristina will renounce her position as seventh in the line to the throne. Within a few years of abandoning his sports career in 2000, and after studying at a prestigious business school, Urdangarin became the owner of a €6m (£5m) house in Barcelona. He set up various companies and became president of a nonprofit foundation, the Nóos Institute. The institute boasted that its patrons included Urdangarin, his wife, an accountant described as an "assessor to the royal household" and professors from two of the world's top business schools, the Barcelona-based Iese and Esade schools. Nóos landed multimillion-euro contracts to organise events for regional governments in the Balearic Islands and Valencia. But public prosecutors in Palma, the capital of the Balearics, have said there is evidence the institute was a front, charging hugely inflated fees and siphoning money off to Urdangarin's private companies. A €1.2m contract with the Balearic Islands was, prosecutors told investigating magistrate José Castro, "totally disproportionate to the task … based exclusively on a fictitious budget which did not analyse a single cost". They said evidence pointed to the foundation being used exclusively to channel money to other companies – many in the names of Urdangarin or his business partners. "That was the sole aim," they said. At least €3.2m out of €5m was passed on from Nóos to Urdangarin's companies, according to Publico newspaper. The scandal comes as the royal family loses support among ordinary Spaniards. A regular poll by the state-run Centre for Sociological Investigation shows that, for the first time since polling started 17 years ago, trust in the royals has fallen below the halfway mark. Spaniards now place greater trust in the press.

Yard detectives investigating Maddie disappearance travel to Spain and Portugal

 

SCOTLAND Yard detectives investigating the disappearance of Madeleine McCann have flown to Spain and Portugal, it emerged yesterday. Three officers met colleagues in Barcelona last month. It is believed the visit was linked to reports Maddie may have been smuggled into the country after being snatched just before her fourth birthday on a holiday in Portugal in 2007. Advertisement >> Investigators hired by parents Gerry and Kate earlier uncovered a child porn ring in the city. A Met Police spokesman said there had been “good co-operation” between the forces. Scotland Yard was called in to review the case earlier this year following a request by PM David Cameron. The McCanns praised cops and added in a statement: “We are pleased that the review is making progress.”

Speeding was identified as a possible cause of what is believed to be one of the world's most expensive ever road accidents

Ferraris and a Lamborghini – plus a Toyota Prius – were among the vehicles involved in the crash, which witnesses said happened when a speeding car slid across a wet road surface.

Television footage showed mangled Ferraris – many of them racing red – and debris spread over some 400 metres of the eastbound side of the Chugoku Expressway, the main trunk road in southern Honshu.

A pack of about 20 supercars was travelling in convoy on Sunday morning on a stretch of wet highway when the leading Ferrari slid into a guardrail, police said.

Those behind slammed on their brakes, but for many of them it was apparently too late.

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"I've never seen such a thing," highway patrol lieutenant Eiichiro Kamitani told AFP by telephone. "Ferraris rarely travel in such large numbers."

Kamitani said 10 people – five men and five women – sustained slight injuries, in the accident. "It is highly possible that they were driving in couples."

"Many of them were probably on their way to Hiroshima," some 130 kilometres (80 miles) to the east, for a gathering of supercars there, said Kamitani.

"Speeding was possible but we have yet to determine the exact cause," he added.

The Prius and a second Toyota also caught up in the 14-car smash were not thought to be part of the supercar pack. The three other vehicles involved in the accident were all Mercedes-Benz.

An unidentified male eyewitness told the TBS network: "A group of cars was doing 140-160 kilometres (85-100 miles) per hour. One of them spun and they all ended up in this great mess."

The speed limit on that section of the highway was 80 kilometres per hour (50mph).

"The front car crashed into the left embankment and bounced off toward me," another man told public broadcaster NHK.

The highway was closed for more than six hours while authorities removed the wrecked cars.

A 36-year-old self-employed man, who did not want to be named, described a scene of chaos as he was driving in the opposite lane at the time of the accident.

"Cars were making a tremendous noise," the man, from Kanzaki, Saga Prefecture, told Japanese media.

One of the Ferraris was reported to be a F430 Scuderia, a model with a top speed of 320 kilometres per hour.

Kamitani said the lead Ferrari was being driven by a 60-year-old self-employed man from Chikushino, near Fukuoka, on the southern island of Kyushu.

Japanese media said the total cost of the pile-up could run to 300 million yen ($3.8 million), with new Ferraris retailing at more than 20 million yen each and Lamborghinis costing anything up to 30 million yen.

Supercars are not necessarily owned by the super-rich in Japan. Many owners are young people who save up their earnings to satisfy their dream, according to media.

No one has been yet been charged over the accident.

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confrontation was between members of the outlaw Gypsy Jokers and Comancheros motorcycle gangs

 

A confrontation between rival bikie gangs saw 12 members ejected from the Danny Green fight in Perth. West Australian Police Commissioner Karl O'Callaghan confirmed on Thursday two gang members were arrested, with one charged with assaulting a public officer. They were led out of Challenge Stadium by members of the Gang Crime Squad during the cruiserweight bout between Green and Poland's Krzysztof Wlodarczyk on Wednesday night. It is believed the initial confrontation was between members of the outlaw Gypsy Jokers and Comancheros motorcycle gangs. "It's not an unusual occurrence at these sorts of events - it is one reason why we have such a large security response," Mr O'Callaghan said.

Hells Angel pleads not guilty in NV casino killing

 

California member of the Hells Angels has pleaded not guilty to a charge of second-degree murder for his role in a September brawl at Nevada casino that erupted into a shootout that claimed the life of his San Jose chapter president. Cesar Villagrana of Gilroy, Calif., is accused of shooting two members of the rival Vagos motorcycle gang the night that his longtime friend Jeffrey "Jethro" Pettigrew was shot to death on the floor of John Ascuaga's Nugget in Sparks. Washoe District Judge Connie Steinheimer on Thursday tentatively assigned him the same Jan. 17 trial date she earlier set for the Vagos accused of killing Pettigrew - Ernesto Gonzalez of San Francisco. But Villagrana's lawyer, Richard Schonfeld of Las Vegas, doesn't expect a trial before the end of 2012.

former full-patch member of the Hells Angels who was the bike gang's treasurer and top man in the Toronto area is in a fight to avoid deportation to Scotland.

 

Mark Alistair Stables, who has no criminal record and has been living here for more than 40 years, was found inadmissible to Canada by an Immigration and Refugee Board for being a member of a criminal organization, the Hells Angels.

He appealed the decision to the Federal Court of Canada, and two weeks ago that court ruled Ottawa can make plans to deport Stables even though he doesn't have a criminal record.

The nine-year "full patch" member was a former Sergeant at Arms and president of the Hells Angels Ontario Corp., in which he acted as a treasurer for 10 chapters for seven years.

"He was very involved in many aspects of the Hells Angels activities," Judge Yves de Montigny said in his decision. The "positions would have given him a good knowledge about the organization's purpose, mandate, agenda or activities."

De Montigny said Stables was "not isolated" from gang activities and "was fully integrated into the Hells Angels."

Court heard Stables arrived in Canada from Scotland with his parents at the age of seven and never obtained citizenship. He joined the gang in 2000 and claimed to quit in 2009.

His immigration problems began in 2006 after he was found carrying Hells Angels paraphernalia and phone numbers as he arrived on a flight at Vancouver International Airport. A report for his deportation was filed.

The board noted Stables had no "exit date" on his Hells Angels tattoo to show that he left the gang.

Stables still has appeals available to him before he can be deported, officials said.

Police said the Hells Angels are involved in drug trafficking, importation of drugs, manufacturing and distribution of drugs, thefts, extortions, firearms, prostitution, money laundering and murder.

"The organization collects intelligence on policing, and it operates a number of clubhouses that make it safe to conduct illegal business," the high court said. "Chapters are usually opened for the purpose of manufacturing or distributing drugs."

de Montigny said members who get in trouble with the law are assisted by club dues that are used to defray their costs.

Police said the Hells Angels is considered the primary producer and distributor of illegal drugs in the U.S. and Canada.