Authorities in Gibraltar have issued an arrest warrant for Karel Mañasco, the former CEO and CFO of Mansion Gibraltar after he failed to attend a court hearing for sentencing in a contempt of court case. Mañasco, 44, is at the center of a legal storm involving allegations that he misappropriated approximately £5 million from the now-defunct online gambling firm.

Former Mansion boss faces arrest after skipping court for contempt sentencing:

According to GBC News, he was due to appear in court on April 9 to receive sentencing for breaching a series of court orders, including a worldwide freezing order issued in March 2023. Instead, Mañasco’s legal counsel submitted a recusal application, claiming Chief Justice Anthony Dudley had demonstrated bias throughout the legal proceedings and should be removed from the case. The application also accused Mansion Group, the law firm Isolas, former minister Albert Isola, and the Gibraltar Regulatory Authority of colluding against him. Mañasco likened himself to David fighting Goliath, arguing that the proceedings were retaliation for his alleged whistleblowing about illegal practices at Mansion.

Despite these claims, the judge declined to step down, stating that although recusal would be “the easy option,” doing so would be wrong. After Mañasco again failed to appear the following day, the court issued a warrant for his arrest. The sentencing has now been rescheduled for May 14.

The contempt charges stem from repeated violations of the freezing order, including exceeding court-imposed spending limits, transferring funds into his wife’s bank account in Spain, and using unapproved bank accounts. He also submitted a false affidavit understating his actual expenditures. Chief Justice Dudley rejected Mañasco’s arguments that he misunderstood the terms or that the spending was attributable to his wife.

In a March ruling, Dudley warned that the nature of Mañasco’s actions would typically result in a custodial sentence, underscoring the seriousness of the breaches. The Supreme Court previously found him in contempt on several applications submitted by Mansion Group between August 2023 and June 2024.

Civil case and ongoing legal battle:

The contempt case is part of a broader and long-running dispute between Mañasco and his former employer. Mansion Group accused him of misusing company funds for unauthorized payments, awarding himself excessive bonuses, and using funds to purchase luxury goods. Civil proceedings in 2024 concluded with the Supreme Court ordering Mañasco to repay €2.5 million and £127,073, a ruling he continues to contest.

According to court records, the payments under scrutiny were linked to White Wizard Media, a firm Mansion claims provided no services in return for the €2.5 million in payments made between August 2018 and June 2019. The money was allegedly transferred to offshore accounts held by Mañasco.

Mañasco has challenged the court rulings on grounds of judicial bias, but his arguments were dismissed by the Gibraltar Court of Appeal in January. His legal team has indicated plans to take the case to the Privy Council in London, citing concerns over privacy rights and the fairness of the legal process.

While the legal saga continues, Mansion Group has ceased all B2C operations. After years of expanding its casino and sportsbook footprint, the company closed its MansionBet brand and shut down UK-facing platforms like Casino.com, MansionCasino.com, and SlotsHeaven.com in 2023. By October of that year, Mansion had ended all direct-to-consumer activity, focusing instead on winding down its operations. Despite this, the company’s legal entanglements persist, with Mañasco’s contempt sentencing still pending.