Ex-Mansion CEO Sentenced to Prison over Contempt of Court in £5 Million Dispute
Karel Mañasco, the former CEO of online gambling firm Mansion Gibraltar, has been sentenced to one year in prison after being found guilty of contempt of court. The case, which centres on accusations that he misused millions of pounds in company funds, has now taken a significant turn with the UK Supreme Court ruling on breaches of freezing orders issued during the legal proceedings.
Ongoing Claims of Financial Misconduct
The legal dispute dates back to September 2022, when Mansion brought a civil claim against Mañasco seeking around £5 million in damages. The company accuses him of serious misconduct during his tenure, including the misappropriation of corporate funds for personal use.
According to the allegations, Mañasco used company money to finance luxury purchases, paid himself an inflated salary and bonuses, and authorised questionable transfers to third parties. He denies any wrongdoing.
As part of the civil proceedings, the court imposed a worldwide freezing order on Mañasco in March 2023 to prevent the dissipation of assets. However, he was later found to have violated this order on multiple occasions, prompting Mansion to file two contempt of court applications.
Court Imposes 12-Month Sentence
In a judgment delivered earlier this year, the Supreme Court found Mañasco guilty on five out of seven contempt charges. These included making a false statement and transferring over £400,000 outside the jurisdiction in defiance of the freezing order.
Chief Justice Anthony Dudley, who delivered the sentence, described the breaches as “so serious” that imprisonment was the only appropriate sanction. He cited the scale of the violations and their impact on the administration of justice as key factors behind the decision.
Mañasco was sentenced to 12 months in prison, with the possibility of a six-month reduction if he returns the £400,000 that was transferred in breach of the court order.
The former executive was not present at the sentencing, prompting the Chief Justice to issue a bench warrant for his arrest. Mañasco is entitled to appeal the decision within the next 14 days.
Freezing orders, also known as Mareva injunctions, are used in civil proceedings to prevent individuals from disposing of assets that may later be required to satisfy a judgment. Breaching such orders is considered a grave offence, often leading to criminal sanctions in addition to civil liability.