Vatican City
A Banker’s Counterclaim: Mismanagement and Misdocumentation
London-based Italian banker Raffaele Mincione is fighting back in UK courts against a sentence by the Vatican State Court for embezzlement and fraud. Mincione’s counterclaim accuses the Vatican of mishandling and misdocumenting funds.
The Deal Gone Wrong
In 2014, the Vatican invested $378 million in a former Harrods warehouse in Chelsea through Mincione’s fund. The deal was supposed to redevelop the warehouse into a luxury residential development. However, when the Vatican bought into the project, Mincione hadn’t received approval from the Royal Borough of Kensington and Chelsea’s planning board.
The Vatican’s Financial Oversight
The Vatican decided to make a series of payments totaling $19.2 million to Italian businessman Gianluigi Torzi to buy the voting shares that gave him ultimate control of the former Harrods warehouse. Although the Vatican gained majority ownership, they ultimately decided to sell the building to Bain Capital in 2022 for $235 million – a loss of nearly $150 million.
Embezzlement and Fraud Charges
In July 2021, the Vatican State Court brought charges against seven defendants, including Mincione, Torzi, and former Cardinal Giovanni Angelo Becciu, who oversaw the deal as the head of general administration. In December 2023, Mincione and Becciu were given five-and-a-half-year jail sentences.
The Countersuit
Mincione’s lawyer, Charles Samek, is questioning the Vatican’s credibility and financial stewardship. Samek points to Peña Parra’s answers about the payments to Torzi, saying the Vatican’s charges against Mincione are an "incoherent and confused allegation of conspiracy."
The Ongoing Investigation
The case is ongoing, with the Vatican’s Chief of Staff, Archbishop Edgar Peña Parra, coming under fire for allegedly giving false testimony. Peña Parra has been questioned about a $6.4 million payment to Torzi that wasn’t appropriately documented.
Conclusion
The dispute between the Vatican and Mincione highlights the complexities of financial transactions and the importance of transparency. As the case continues to unfold, it will be interesting to see how the Vatican responds to Mincione’s countersuit and whether their financial oversight will be scrutinized further.
FAQs
Q: What was the original deal between the Vatican and Mincione’s fund?
A: The Vatican invested $378 million in a former Harrods warehouse in Chelsea to redevelop it into a luxury residential development.
Q: Why did the Vatican invest in the project?
A: The Vatican intended to use the investment to diversify their portfolio and generate returns.
Q: What went wrong with the deal?
A: The Vatican did not receive planning approval for the redevelopment project, and the deal ultimately resulted in a loss of nearly $150 million.
Q: What are the allegations against Mincione and Becciu?
A: They are accused of embezzlement and fraud for their role in the deal.
Q: What is the Vatican’s stance on the allegations?
A: The Vatican maintains that their charges against Mincione are justified and that they were victims of the failed deal.
Q: How is the case currently proceeding?
A: The case is ongoing, with the Vatican’s Chief of Staff, Archbishop Edgar Peña Parra, being questioned about alleged false testimony and misdocumentation of funds.
Author: www.inman.com
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