Spain Judge Held CAM Bankers on Risk They’d Flee to Curacao

A Spanish judge investigating the management of failed savings bank Caja de Ahorros del Mediterraneo ordered its former managing director to be held in custody because of the risk he’d flee to the Caribbean.

Judge Javier Gomez Bermudez ordered the detention of Roberto Lopez Abad to avoid destruction of evidence and because he and two other former CAM executives had the financial means to flee to Curacao, which has no extradition treaty with Spain, according to a ruling dated yesterday sent by e-mail from the National Court in Madrid today.

The Bank of Spain took over CAM and removed its management in July 2011 as losses linked to real estate loans wrecked its business. Banco Sabadell SA then agreed the same year to buy the lender for one euro. Judge Gomez Bermudez today was due to take declarations from Lopez Abad and the other former executives as he probes their links to CAM’s alleged investments in tax havens.

There were no listings for Lopez Abad in the Valencia region, according to the online phone directory www.blancasamarillas.es.

To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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