Walter Finch
GIBRALTAR’S Gambling Commissioner has defended himself over his decision not to open an investigation into the now-defunct gaming company Mansion Group.
Andrew Lyman denied he had a conflict of interest given that he was appointed by Albert Isola, the gambling minister of the time, who was also a senior partner in the law firm representing Mansion.
It comes after the Olive Press first reported sensational allegations against one of the Rock’s largest gaming companies by ex-CEO, Karel Manasco, 43.
Manasco alleged the firm defrauded dozens of governments around the world from its Gibraltar HQ between 2011 and 2021.
The list of offences include operating in countries without appropriate licences, circumventing regulations and dodging taxes.
But perhaps the most damning allegation was that Mansion executives set up anonymous gaming companies that could not be traced back to the company in order to continue operating in countries where online gambling was illegal.
All the allegations have been ‘vehemently denied’ through Mansion’s legal representatives, the law firm Isolas.
The Olive Press first revealed the allegations during an ongoing legal battle between the remnants of Mansion and Manasco at the Gibraltar Supreme Court.
It led to Gambling Commissioner Andrew Lyman facing questions over his inaction when alerted to the allegations in November 2023.
However, in an email sent to this newspaper, Lyman insisted Manasco’s lawyers failed to provide him with the necessary evidence to investigate.
He added that he suspected they were trying to use him to boost their case as the matter was already going through the Gibraltar courts when he was alerted.
He also cast doubt on his ‘legal standing’ to probe a firm that had already surrendered its licence.
The Asian-owned company mysteriously closed all its online gambling platforms and wound itself down in 2023 around the same time as it was suing its former CEO in Gibraltar.
Mansion Group accused Manasco of taking huge bonuses while splashing company money on luxury cars and expensive watches.
The firm won managed to win a worldwide freezing order against him in 2023 over the allegations, which Manasco furiously denies.
“The allegations made were high level, ambiguous and some of the allegations were inconsistent with known facts,” the former regulations chief at William Hill told us.
“Some of the allegations appeared to be unrelated to this jurisdiction [Gibraltar] and some well before the time I was appointed as Gambling Commissioner in 2018.”
He also dismissed suspicions that Mansion Group wound itself down in order to ‘avoid any investigation.’
He added: “As I understand it, the decision to close Mansion in Gibraltar was for commercial reasons.
“It was an orderly wind down of the company which was signalled in advance to me as the regulator.”
He also pointed out he had been behind an investigation that saw Mansion fined £850,000 for ‘anti money laundering failings’ in 2020.
“I recognise that a conflict of interest is being alleged by the media between the former minister and Isolas law firm.
“What I can say is that the former minister never sought to influence the outcome of the money laundering investigation,” he continued.
The news comes as the Gibraltar government puts the final touches on a new Gambling Bill expected to go before Parliament in the autumn.
Speaking at the annual KPMG Gibraltar eSummit, Nigel Feetham, the Minister for Justice, Trade and Industry, said they are currently listening to ‘industry feedback.’
But he warned: “One threat to the reputation of Gibraltar are the risks that arise from marketing and other similar activities carried out that associate Gibraltar with online gambling that takes place elsewhere, without our regulator having any handle on the gambling activity.”
Gaming Commissioner Andrew Lyman asked the Olive Press to publish his email in full:
Dear Mr Finch
Firstly, on a point of fact, outline allegations were not put to me until November 23, by which time Mansion had ceased trading and the matter between Mansion and Manasco was already before the court. As I understand it the freezing order was issued in Feb 23 and at the time allegations were made to me, the matter was already set for trial on the substantive issues.
The allegations made were high level, ambiguous and some of the allegations were inconsistent with known facts. I asked lawyers acting for Manasco to provide me with further particulars, but none were forthcoming. Some of the allegations appeared to be unrelated to this jurisdiction and some well before the time I was appointed as Gambling Commissioner in 2018. One inconsistency was that allegations were being made against an entity for part of which Mr Manasco was the controlling mind or a key executive.
The allegations were made in the context of a forthcoming court case and, in the absence of detailed allegations, it was felt that it was up to the Court to determine what weight it gave to the allegations, if such allegations were detailed in court.
Mr Manasco never made any allegations against his employer to me whilst employed by Mansion.
I had previously investigated Mansion for anti money laundering failings dating back to at least 2020 (when Mr Manasco was the CEO) and that resulted in a £850,000 regulatory settlement
Mansion remained licensed for some weeks after it ceased trading so that I could ensure that customers were treated fairly, their deposits could be withdrawn and that there was an orderly withdrawal from the market (which there was).
As I understand it, the decision to close Mansion in Gibraltar was for commercial reasons and not so that Mansion could “avoid any investigation”. As stated, it was an orderly wind down of the company which was signalled in advance to me as Regulator.
I recognise that a conflict of interest is being alleged by the media in the self-evident and transparent link between the former Minister and Isolas law firm. What I can say is that the former Minister never sought to control or influence the conduct and outcome of the anti-money laundering investigation into Mansion and this was not, for one moment, something that I considered, in calling for more detail of the high-level allegations made to me in November 2023. No further detail was ever forthcoming.
The former Minister is, in my experience, someone of high integrity; who manged any potential conflict of interest appropriately and he has never sought to assert any degree of undue influence over me as Gambling Commissioner; not have I felt under any official pressure on this issue.
In fact, if anything, I was conscious that the high-level and somewhat historical allegations were being made in the context of the civil court case and that there was a possible attempt to bounce me into commencing an investigation to give greater weight to the allegations, which may or may not be made in court. I also thought that it was right for the court to hear any detailed allegations supported by evidence and to give such weight to them as the court saw fit.
Now that Mansion has surrendered its licence, I do not believe that as Gambling Commissioner, I have any standing to investigate the past conduct of the licensee. That said, I am sure the court will decide on what weight it should give to any allegations made by Mr Manasco during the conduct of the civil matter.
I am very much looking forward to reading the judgement of the court on this matter and, when the time comes, will take what learnings there are from that judgment when it is issued.
I would ask that you print all of my response (in the proper context) and are not selective in the use of quotations.
Regards
Andrew
