A NATIONAL Court judge has ordered the arrest of the former CAM bank's managing director and four other members of the board in connection with alleged illegalities in their management of the Comunidad Valenciana-based financial institution.
The CAM has now been swallowed up by Banco Sabadell, but during its presence on the high street as a savings bank, managing director Roberto López Abad and director Daniel Gil are said to have obtained 'personal benefit' from a five banking operations jointly with a shareholder, Valfensal.
They are believed to have used the sales and purchases of three hotels and the acquisition of two plots of land in México and the Dominican Republic as a front for illicitly transferring funds from the CAM to Valfensal.
And the investigations say the board of directors deliberately carried out transactions which they knew the bank's assets could not cope with, for their own benefit, which would cause financial loss to creditors, customers and shareholders.
This is thought to have led to the collapse of the CAM bank, which was intervened by the Bank of Spain on July 22, 2011 and found to have accumulated losses of over 1.1 billion euros in the first six months of that year.
The bank was recapitalised with an injection of 2.8 billion euros and temporarily passed into the hands of the FROB (Banking Order and Restructure Fund).
It was the FROB who filed legal action in the National Court against López Abad and Gil.
They have now been arrested along with former managing director María Dolores Amorós, former chairman Modesto Crespo, and ex-managers of resources and planning, Vicente Soriano and Teófilo Sogorb.
