Swiss and Spanish investigators are looking into unusual financial activities involving the former Spanish king. One of the accounts used for the transactions was hosted by a major Geneva-based private bank.

It sounds like an international business thriller and may yet turn into a devastating scandal for the Spanish royal household and primarily its former regent, Juan Carlos I.

Official investigators in Spain and in Geneva are currently looking into a series of unusual activities that involved the ex-king, his alleged ex-lover, Saudi money and a Geneva bank account.

Many details about the affair are emerging following a request for legal assistance from the Geneva prosecutors to their Spanish colleagues, according to a report in Spain’s «El Pais» newspaper.

100-Million-Dollar Gift From Riad

The story started shaping up in 2008. The Saudi ruler at the time, King Abdullah, sent $100 million to an account at private bank Mirabaud in Geneva. The account belonged to a foundation whose only beneficiary was Juan Carlos, according to a report by «Tages-Anzeiger» (behind paywall in German).

A gift, it was claimed at the time. The bank thought this to be true for four years, until Juan Carlos took $65 million and allegedly sent it to Corinna Larsen, a Monaco-based businesswoman who is said to be either a close friend or ex-lover of Juan Carlos. Larsen is also known under the name of Princess Corinna zu Sayn-Wittgenstein.

Money Spent on Real Estate

Robin Rathmell, lawyer for Corinna zu Sayn-Wittgenstein, commented in a statement to finews.com: «In 2012 our client received an unsolicited gift from the King Emeritus who described it as a form of endowment for her and her son of whom he had become fond. It followed several years of ill health when our client cared for him. The endowment was clearly documented as a gift, and the professional services firms and banks performed the necessary compliance and due diligence on the funds. Our client has no place in these proceedings and we look forward to their swift conclusion.»

In 2016 and 2017, Larsen sent 39 million euros to one of her accounts at a U.S. bank, according to «El Pais». Some of the cash was spent on the purchase and renovation of two apartments in Villars-sur-Ollon in the Swiss Alps and on the purchase of a villa in London.

Bertossa's Suspicions

Yves Bertossa, the well-known state attorney of Geneva, believes that the true reasons for the transactions were money laundering and kickbacks for the order of a high-speed rail link to Mecca. A Spanish consortium led by OHL won the contract for the project. The suspicion is that Juan Carlos was involved in the award of the deal.

«Separately, the AVE deal, which is deservedly the subject of so much investigation and which our client had no involvement in, has no connection to these funds. A rudimentary look at the chronology of the origin of funds shows this clearly,» Rathmell added in the statement.

The Ex-King Hires an Ex-Attorney

«Tages-Anzeiger» said that Bertossa in 2018 had launched an investigation into the case on suspicion of money laundering. The case involved three people – Larsen, Dante Canonica, a lawyer, and Arturo Fasana, head of Geneva fund manager Rhône Gestion. Canonica and Fasana led the foundation that received the original payment in 2008.

The investigation was also aimed at Mirabaud, the Geneva-based private bank. In Spain, the case was dropped in 2018 for lack of proof. With the new information that has emerged, the case may now be reopened. Juan Carlos has hired an ex-attorney, who specializes in corruption cases, according to «El Pais». He will represent the ex-king should he become embroiled in the case.