Tradex Trial Ends: Daswani's Lawyer Denies Intentional Fraud
On the final day of the Tradex trial, lawyers for defendants Mukesh Daswani and Francisco Imobach Pomares denied intentional fraud and sought acquittal respectively, arguing against claims of a pyramid scheme that cost investors nearly €3 million.
During the final day of the Tradex trial, lawyer Roberto Elices, representing Mukesh Daswani, denied that his client intentionally planned to deceive or defraud investors. The trial has been running for three months at the Provincial Court of Santa Cruz de Tenerife. Elices stated that Daswani did not have a "prior and defined plan" to trick people who invested in his trading operations, nor did he intend to "keep their money."
Daswani's lawyer described Tradex as "a disastrous business, an invented business carried out with absolutely deficient management." He admitted that his client is responsible for some wrongdoing but argued that the punishment should be a five-year prison sentence, three of which Daswani has already served. This is much less than what the prosecutor and private accusers are seeking, who want Daswani jailed for 12 years for aggravated fraud and hiding assets to avoid payment.
Elices also argued that if Daswani is found guilty and has to pay back money with others, the amount should only be what investors originally put in. He believes it should not include the promised interest, which was around 30% to 50% of the investment, as the accusers are demanding.
Yesterday marked the twenty-second and final day of the trial. The case investigates an alleged pyramid scheme, similar to a Ponzi scheme, which reportedly caused at least 160 people to lose nearly three million euros.
Daswani's lawyer claimed that the idea of using other people's money for investments came from a student Daswani was teaching about trading. He said Daswani's original goal was "not to set up a company dedicated to investments, but to training." However, the lawyer admitted that Daswani did use money from several investors for trading, promising them a 50% return on their capital within two months.
The lawyer explained that the investment business failed between March and July 2022. This was due to a huge number of contracts signed by commission agents, who were guaranteed an average of 10% of the money brought in by new investors.
Francisco Imobach Pomares, another defendant, started working for Daswani as a Tradex salesperson and later became a 50% partner in a company with him. Pomares faces the same charges as Daswani. Last week, the prosecutor and one of the accusers increased their request for his prison sentence to eleven years.
However, Concetta Contino, Pomares's lawyer, asked for his acquittal yesterday. She argued that her client "is another victim of the deception devised by Daswani." She stated that "Imobach was a salesperson, received orders from Daswani, and collected commissions for the investors he attracted, like so many others who are not in the dock."
Contino emphasized that Pomares was not involved in the actual investment operations or the management of the business. She said he only found out about the collapse when Daswani announced it. She also highlighted that Pomares provided all his documents, set up a platform for those affected, and even led a complaint at a law firm. However, he was later removed from the firm after being charged in a fraud case where his own family and friends lost money, causing "serious damage to his image and way of life."