Benjamin Marrache, the firm’s Managing Partner said "we intend to appeal the decision of the FSC. If there are any issues involving any of these companies these will be resolved."A fortnight of frantic activity to establish whether or not client account funds had been compromised followed weeks of rumours that Marrache & Co were in financial difficulty. It is understood the RGP Financial Crime Unit is monitoring developments. The financial hole is believed to run into millions.It was the FSC which yesterday evening formally burst the bubble when it announced that it had cancelled a series of licences mostly related to their trustee services.
The timing was driven by law and came immediately after urgent legislation was Gazetted by the Gibraltar Government creating the power of an authorised administrator. In a separate move related to the crisis, lawyers acting for an Irish based client last Friday sought an injunction against Marraches and at a further hearing today will be seeking to secure property assets valued at over £2m.
The FSC yesterday cancelled nine licences that had been granted to firms and persons operating under the Marrache umbrella.

It was a week earlier on Monday February 1 that, following earlier FSC intervention, Freddie White of Grant Thornton’s, a leading figure in liquidations and administration work, was authorised by the Chief Justice to investigate and then take control of the firm’s finances.

Gibraltar’s Financial Services Commission has cancelled nine licences of Marrache & Co, the well-known Gibraltar-based international law firm.The Gibraltar FSC said the decision followed an investigation that had disclosed “serious and persistent breaches of Gibraltar’s financial services legislation.”
Gibraltar’s chief justice is understood to be expected to rule today whether the firm may be permitted to continue to practice.A phone call to Marrache seeking comment was not immediately returned. However, managing partner Benjamin Marrache was quoted by the Gibraltar Chronicle as saying: “We intend to appeal the decision of the FSC. If there are any issues involving any of these companies these will be resolved.”
In a statement on its website The FSC said it had “taken immediate measures to safeguard the interests of the existing clients” of Marrache, and had named Grant Thornton (Gibraltar) managing director Frederick White authorised administrator of the seven companies in accordance with its regulations.It said White would “work closely with [Marrache’s] clients in assisting them to transfer their business to other licenced entities at the earliest opportunity, having regard to the particular needs of individual clients.”
Marrache is well known in financial legal circles, particularly in Gibraltar, where it identifies itself as the only Gibraltarian law firm with offices in London, Spain, Lisbon, Prague and Luxembourg.According to the Gibraltar Chronicle, the FSC's announcement that it was cancelling nine of Marrache's licenses came after "weeks of rumours" of difficulties at Marrache, and "a fortnight of frantic activity to establish whether or not client account funds hand been compromised".

A partner in the London office of Marrache & Co has reacted angrily to news that the firm’s Gibraltar-based founding partners have had their Financial Services Commission (FSC) licenses cancelled, claiming the City base’s reputation is suffering by association.Benjamin Marrache
Founding partners Benjamin and Solomon Marrache were arrested on Tuesday and charged with falsely accounting €1.8m (£1.58m) of client money. They spent the night in police cells before appearing in Gibraltar Magistrates Court on Wednesday, when they were granted bail at £300,000 each.The court also required the brothers to pledge £150,000 each, as a recognisance, to hand in their travel documents and report to police twice a week. The case has been adjourned until April.Steven Daultrey, a partner in Marrache & Co’s London office, which is linked to Gibraltar only through the brand, said he felt “anger, rage and incandescence at certain names working in the firm’s Gibraltar office”.

“I have an office here with people whose livelihoods I have to consider,” he said. “I’m utterly speechless. The Gibraltar firm has nothing to do with the London office; [Benjamin and Solomon Marrache] aren’t signatories here. We do English-law work only.

“I’m concerned for the London office clients too, but at the moment those clients have been nothing but 1,000 per cent supportive. We haven’t had one client complain, they’re saying they’ll do anything to help. They receive a good level of advice here but, in terms of reputation, the situation is awful.”The Marrache brothers are alleged to have falsified documents to hide €1.8m of missing money belonging to shipping company Portino Comercio Internacional.
Gibraltar’s FSC cancelled nine licenses held by Marrache & Co, which also has offices in London, Spain, Lisbon, Prague and Luxembourg.According to a statement issued by the FSC the decision to cancel the brothers’ licenses was taken “following an investigation into the affairs of the licensed entities and persons which in the opinion of the Commission have disclosed serious and persistent breaches of Gibraltar’s financial services legislation”.
The Lawyer was unable to reach anyone at Marrach & Co’s Gibraltar office, which is understood to be under police guard, but Benjamin Marrache was quoted in the Gibraltar press as saying: “We intend to appeal the decision of the FSC. If there are any issues involving any of these companies these will be resolved.”
The firm’s Spain, Lisbon, Prague and Luxembourg offices are understood to be linked to the firm by name only.Frederick White, managing director of Grant Thornton, has been appointed by the FSC as authorised administrator for the firm, in which capacity he will help clients of the Gibraltar office transfer their business to other licensed entities.

Martin Anthony Smith, 44, of North Shields, is wanted in connection with the rape of a child under 16, gross indecency with a girl under the age of 16, indecent assault of a girl under 16 and the attempted rape of a girl under 16. He may be on the run with his wife and five-year-old daughter.

Mark Ronald Brown, 44, of Liverpool, is accused of being the head of a drug smuggling gang that conspired to bring hundreds of kilos of heroin into Britain.

Jody Michael Flynn, 28, of Birkenhead, is accused of causing grievous bodily harm with intent and maliciously inflicting grievous bodily harm.

Stephen John Burnell, 56, of Scunthorpe, is wanted following a failure to surrender to custody after being convicted of a series of sex crimes. He was facing a six-year jail sentence for offences including attempted rape, indecent assault and indecency with a child.

Michael Eddleston, 27, of Doncaster, is accused of three counts of illicit trafficking in narcotic drugs and psychotropic substances

Fatah Benlaredj, 32, originally from Algeria, is wanted for the rape of a seven-year-old girl.

Joseph Stephen Morley, 46, of Liverpool, disappeared from prison in 2000 while serving a 15-year sentence for conspiracy to import cocaine and heroin

Stephen Henry Pitman, 53, of Chislehurst, southeast London, is accused of seven offences of of conspiracy to supply Class A drugs.

Paul Walmsley, 40, who is wanted for heroin and cocaine trafficking. He has been on the run for three years.Police are also appealing for help in finding Martin Smith, 44, suspected of raping a young girl.He is thought to be in hiding in Spain with his wife and five-year-old daughter.

Benjamin Murphy, 29, is wanted for a robbery in which a gang ram-raided a jewellers in Sheffield and escaped with £1.6m worth of diamond rings and watches.
Murphy, from Manchester, has been on the run since jumping bail 18 months ago.
Although South Yorkshire Police had confiscated his passport he was able to apply and get a replacement, claiming he had lost the original.
Two of Murphy's cousins are already serving long jail sentences for their part in the robbery, from which most of the jewellery is still missing.
Shop owner Gary Singleton said: "He's done a runner and got away with a lot and is living the high life. If he's done the crime he should be doing the time."
Are criminals hiding among tourists?
Murphy is described as stocky with green eyes, shaved, dark brown hair and Chinese dragon tattoos on his chest and right arm.

Financial Services Commission has today, pursuant to Section 11 of the Financial Services (Investment and Fiduciary Services) Act cancelled the licences of the following licensed firms and persons ;
Gibland Secretarial Services Limited ; Licence No FSC00171B
Gibland Nominees Limited ; Licence No FSC00175B
Equity Nominees Limited ; Licence No FSC00174B
Equitar Management Limited ; Licence No FSC00172B
Gibter Management Limited ; Licence No FSC00173B
Cabor Trustees Limited ; Licence No FSC00430B
Meridian Trustees Limited ; Licence No FSC00890B
Marrache, Benjamin John Samuel ; Licence No FSC00736I
Marrache, Solomon S ; Licence No FSC00176I
The decision has been taken following an investigation into the affairs of the licensed entities and persons which in the opinion of the Commission have disclosed serious and persistent breaches of Gibraltar’s financial services legislation.
The Commission,while investigations continue, has taken immediate measures to safeguard the interests of the existing clients of these firms and has appointed Mr Frederick White Managing Director of Grant Thornton (Gibraltar) Limited of 6a Queensway, Gibraltar (Tel. 200 45502) as Authorised Administrator of all the above companies pursuant to the provisions of the Financial Services (Investment and Fiduciary Services) (Temporary Administration of Companies) Regulations 2010.

The Authorised Administrator will work closely with the clients of these firms in assisting them to transfer their business to other licensed entities at the earliest opportunity having regard to the particular needs of individual clients.

Two senior executives at a prominent Gibraltar law firm, brothers Benjamin and Solomon Marrache, appeared before the Magistrates Court yesterday charged with false accounting in respect of E1.8m of client money.The two men were arrested on Tuesday and spent the night in police cells before being ferried to court in a police van.The two Marrache brothers were ushered by police through a side entrance to Central Police station just before 10am and appeared before the magistrate in a crowded courthouse a short while later.Attorney General Ricky Rhoda, appearing for the Crown, urged the magistrate to impose stringent bail conditions for fear that the two men might flee the jurisdiction.Keith Azopardi, the defence lawyer representing the Marrache brothers together with Samantha Sacramento, said there was no risk of them leaving Gibraltar because both were of previous good character and had strong family ties here.Stipendiary Magistrate Charles Pitto granted bail but set tough conditions on each defendant, in the form of two sureties to the value of £300,000 for each brother. The court also set a further financial condition of £150,000 in their own recognizance for each defendant.In simple terms, failure to appear at future court hearings could cost the defendants and their guarantors up to £900,000 in total.Both men also had to hand in their travel documents and agree to reside at their respective family homes, as well as report twice weekly to police.By the end of the day yesterday, a number of persons had stepped up to provide £600,000 in sureties for the release of the two men.At an hour-long hearing in the evening, Mr Pitto questioned the guarantors closely but accepted the sureties. The two brothers were released from custody later that evening.Yesterday’s developments in court were the opening shots in what will undoubtedly develop into a lengthy and complex case.Mr Rhoda said the sums of money involved “could be quite substantial”.He said the two men were currently facing “holding charges” and that more charges could follow at a later stage. The Attorney General also said there could be further arrests as a result of an ongoing police investigation.Earlier this week police raided several commercial and residential properties linked to Marrache & Co and seized documents and computers.Prosecutors allege that in January this year, the brothers falsified documents to conceal a shortfall of E1.8m of funds belonging to a company called Portino Comercio Internacional. One document, a letter signed by Solomon Marrache, purported to show that the money was held by the brothers on the client’s behalf. Another document, a letter signed by Benjamin Marrache, purported to give authority to Natwest bank to transfer the client’s money to a bank in Ireland.But prosecutors said that the Gibraltar bank account supposed to hold the company’s cash in fact had a balance of less than nine Euros and no credit facility.