Former Mansion CEO hit with £5m global asset freeze in latest legal twist

Gibraltar chief justice Anthony Dudley has issued a £5m global freezing order on the assets of ex-Mansion CEO Karel Christian Mañasco as the ongoing legal tussle between the former exec and the company rumbles on.

Mañasco joined Mansion in 2010 and became chief financial officer in 2012 before being promoted to CEO in January 2017.

However, the CEO was suspended after an internal investigation was launched in September 2021 into his actions while he was head of the online sports betting and casino firm. Mañasco resigned in December of the same year.

Mansion has since filed claims with the courts in Gibraltar to seek damages against Mañasco relating to the former exec allegedly awarding himself inflated bonuses, unauthorised payments to companies and splashing company cash on sports cars and luxury watches.

Mansion is seeking damages or equitable compensation in the total sums of £2,339,464.18 and €2,977,003.64 as part of the legal claim.

Mansion alleges that Mañasco paid himself €327,033.28 and £427,500 in bonus payments for the financial years 2019 and 2020, despite the group’s financial performance failing to warrant such payments.

Mansion noted its 2019 and 2020 performance “were not good” and that 2018 had been boosted by a “large windfall” from a large settlement with a jackpot winner.

In 2018, Mansion retuned net profit of around $7.1m, while in 2019 this fell to a net loss of around $6.8m. Losses plummeted further in 2020 to $7.6m.

Mansion has claimed that Mañasco would have been well aware of the financial health of the business, yet still proceeded to award himself the six-figure bonuses in 2019 and 2020.

Mansion also claimed that Mañasco “deliberately misled” the company’s HR division to authorise the payments.

Elsewhere, Mañasco is said to have authorised two payments to White Wizard Media, a “suspicious” company incorporated in the Marshall Islands, which Mansion said did not provide any services to the firm.

The payments amounted to €2,508,035.36 and £127,073.28, respectively.

Mañasco is also accused of using Mansion funds to the tune of £192,139.97 to buy four luxury vehicles for his personal use, along with two five-figure outlays for luxury watches. Mansion said both the cars and watches provided no benefit to the company.

The charge list continued, with Mansion also alleging Mañasco spent £249,951.31 using company credit cards on personal expenses, plus an extra £71,931.21 to fund legal fees and rent.

In pursuing a global asset freezing order, Mansion pointed to the fact Mañasco had sold his so-called “sanctuary” property in Gibraltar in February 2022 for £8.2m, netting a £3.8m profit in the process.

Mansion argued that Mañasco has failed to purchase another property on the peninsula despite being based there, arguing this was part of his asset stripping.

Mañasco said that he sold the property as he was unsure if he would be able to afford the rent following his departure from Mansion. He also said that all of the profit, except £1.5m which he funnelled into a crypto investment scheme, remained in his Gibraltar bank accounts.

Having assessed the claim, chief justice Dudley agreed to grant the “nuclear option” of the global freezing order.

Dudley said: “The allegations that suggest that [Mañasco] treated Mansion almost as his personal fiefdom, there is in my judgment absolutely no doubt that the claimants [Mansion] have made out their case.

“Moreover, the fact that [Mañasco] has disposed of the sanctuary property and not acquired another property in Gibraltar, even though he is from Gibraltar and in the past has owned property in Gibraltar, further fortifies me in my view that the relief sought should be granted,” he added.

Mañasco denies the allegations and said he would contest the ruling.