Washington, D.C. Newsroom, Jul 31, 2020 / 12:30 pm (CNA).- New details have emerged about the links between the two Italian businessmen at the center of the Vatican financial scandal.
In the months before Gianluigi Torzi was asked by the Holy See to act as middle man for the final purchase of the London property at 60 Sloane Ave. from Raffaele Mincione, a company owned by Mincione secured a multi-million-euro loan from a company controlled by Torzi.
Last month, Torzi was arrested by the Vatican and charged with a range of financial crimes. The following day, Vatican-state media accused Mincione of a “conflict of interest” in his management of investments for the Secretariat of State.
The Financial Times reported on July 30 that in January, 2018, Sunset Financial, a Malta based company controlled by Torzi, provided a 26.4 million euro line of credit to Pop 12 Sarl., a Luxembourg company owned by Mincione.
Corporate filings in Luxembourg, examined by CNA, show that the credit line, from which Mincione’s company borrowed nearly 14 million euros in January 2018, was secured against an investment in the Italian Banca Carige.
The filings also show that in 2018, Pop 12 paid Torzi’s company more than 700,000 euros for the arrangement of the loan and for other “legal consulting fees” related to its Carige shares.
In February 2018, Mincione’s company borrowed an additional 12 million euros from a line of credit extended Global Prime Partners, Ltd (GPP), a European prime broker. The line of credit was secured with the same collateral as the credit line from Sunset Financial: the Carige bank shares.
According to filings by Pop 12, since the GPP credit line was secured against “all the Carige shares held by the company,” the Sunset debt was subordinated to the GPP debt – meaning that, if necessary, Torzi could be repaid only after GPP.
Over the course of 2018, the share value of Carige collapsed, and Pop 12 reported a loss of nearly 17.5 million euros on the value of 24.9 million euro holding in the bank, leaving it unable to cover the loans from GPP and Sunset.
In November 2018, Torzi was asked by the Vatican Secretariat of State to broker the final purchase of the London building from Mincione.
Corporate filings in Luxembourg examined by CNA show that weeks after the final sale of the building to the Vatican, Mincione loaned millions of euros from his Athena Capital Real Estate and Special Situations Fund 1 (through which he owned and sold the building) to Pop 12 to repay part of the loan from GPP, which, because of the company’s debt structure, made it more likely Pop 12 could eventually repay its debt to Torzi’s company.
Both men have denied that the Pop 12 – Sunset loans played in Torzi’s role in the Vatican’s purchase of the London building from Mincione.
A spokesman for Mincione told CNA that “the suggestion that any commercial relationship between Pop 12 and Sunset Financial had any influence on the Vatican’s decision to appoint Mr Torzi as agent, is entirely wrong.”
CNA asked Mincione if Torzi, or Sunset Financial Ltd., were involved in Pop 12 securing the line of credit from GPP, and if there was any discussion, professional or social, between Torzi and Mincione of the Vatican’s investment in the London property prior to November 2018.
Mincione’s spokesman characterized the dealings between Pop 12 and Sunset as “a very usual commercial arrangement” and said “it doesn’t seem necessary for us to respond to [these] points.”
Details of the pre-existing business relationship between Mincione and Torzi come nearly two months after Torzi was arrested by Vatican authorities on charges of “extortion, embezzlement, aggravated fraud and self-laundering,” in relation to his part in the deal.
Following Torzi’s arrest, Mincione said that Torzi’s involvement in the London deal came at the instruction of the Secretariat of State without any input from him.
Speaking to ADN Kornos in June, Mincione said Torzi was a “counterpart,” not a “partner,” and characterized their personal connection casually as “two Italians in London.”
While dismissing their personal acquaintance, saying they knew each other slightly since their offices were off the same square in London, Mincione also told AN Kornos that he had in his possession a photograph of Torzi with Pope Francis. A similar image was subsequently released online.
The building at 60 Sloane Avenue was bought by the secretariat in stages between 2014-2018 from Mincione, who at the time was managing hundreds of millions of euros of secretariat funds. CNA has previously reported that Mincione also invested Vatican funds in other companies and projects owned by or connected to him.
The Vatican cut ties with Mincione in 2018, acquiring the whole of the London property and withdrawing its remaining investment with Athena, asking Torzi to broker the final transfer of ownership, which he did using his own Luxembourg holding company, Gutt SA, as a pass-through, earning Torzi some 10 million euros in the process.
Before Torzi’s arrest, CNA reported that Fabrizio Tirabassi, a lay secretariat official who oversaw investments, was appointed a director of Torzi’s company while the businessman was finalizing the Vatican’s purchase of the London property from Mincione.
On June 6 this year, Vatican News described Mincione’s management of Vatican investments as “speculative” and a “conflict of interest.” Later that month, Mincione, through two of his companies, filed lawsuits against the Secretariat of State and the holding company which controls the London building, and which he sold to the secretariat.
Earlier this month, Vatican prosecutors, working with Italian authorities, executed a search and seizure warrant against Mincione. Italian media reported that Mincione, accompanied by his lawyers, presented himself to police by prior arrangement, who seized electronic devices, including cellular phones and iPads.
Vatican action against Mincione was the latest development in a 18-month-long ongoing investigation into financial dealings by the Secretariat of State.
A series of raids by Vatican authorities, beginning in October last year, have resulted in the suspension of several serving and former employees at the secretariat, including Tirabassi, as well as Msgr. Alberto Perlasca, whose home and office were raided earlier this year.
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I’m wondering why the Vatican thinks it necessary to parade an elderly and very sick man for everyone to gawk at. We get it that the Pope has been quite ill and near death. We pray for him as we would anyone in his state. But do we really need a full medical report daily or expect him to actively participate in the governance of a Church of over a billion? Let’s exercise some common sense. The Church will be just fine. We have thousands of bishops worldwide to shepherd Christ’s flock. Let the Pope get some rest behind the walls of the Vatican and stop this media spectacle of having him make public appearances.
I was wondering why the cameras behind him? What/why are they recording?
The cameras to shoot stills and video of crowd shots, as shown in this very article. One shot posted on the vaticannews website (if not pulled as bad PR) showed a horribly bloated and purple entire hand, some no doubt from needles as for purple, but this extended into fingers. No suprise on an old man with failing circulation.
Darker corners of the web were already wondering if he was dead or mentally incapacitated due to almost total blackout on photos. As for PR stunts, tops would be him in his condition wanting to be shoehorned into his Audi 500 for the ride to San Marta, an Audi as surely humble and unmodified as his humble San Marta hotel room…
where I have always thought his residence there was to dodge known or possible bugging of the papal apartments, his converting a significant chunk of San Marta giving him a known clean slate, and free to see those who might raise eyebrows, and same now, as he tries to make sure his agenda continues after his passing, including in how to influence selection of his successor.
… an Audi as surely humble and unmodified as his humble San Marta hotel room…..
Can’t make up my mind if you’re being ironic or if You’ve been among those taken in by the showboat humility.
Truly humble people do not trumpet their humility, or have a formerly excellent Vatican reference website converted almost entirely to news trumpeting that humility.
Praise God the Pope is recovering. 🙏
Yes but the only real recovery and the only recovery that matters is eternal life. We value life while we’re still living but death awaits us all and we can only hope for eternal life.
I’m sure glad when I was recovering from pneumonia years ago my doctor valued life. We take good health for granted until we can’t. Pneumonia takes even younger folks a couple months to recover from. God bless Pope Francis. He’s had a rough time.
He appears, unfortunately, still in a state of compromise, as visually indicated and by frequent informing by the assistant constantly by his side. Perhaps an effort by his cadres to continue to implement policy adjustments for whatever may transpire. Our prayers should be for his well being and God’s guidance for the Church.
He seemed responsive to some prompts, even to showing a negative response, seemingly saving oxygen thru limited motion and speech and clearly running out at the end and the camera cut away so they could give him oxygen….in short, he might be mentally alert, or might just be a brain damaged difficult patient, but will give the benefit of doubt for now that he still is trying to maintain his agenda.
Thanks Bob. I keep him in my prayers especially during Mass.
Amen, Father.
Some really uncharitable comments on here, were some of you saying the same thing when St John Paul II was in the Gemelli during the last months of his life twenty years ago. Praying for the Pope’s full recovery.
William, if by any chance you’re referring to my comments, I’ll say the following. I thought the same thing when St. John Paul II was wheeled to the window in his dying days. It’s not that imminent death is something to be ashamed of but a dying person ought not be made to pretend as if he’s still fully functional and on the job. The Pope deserves better.
Regan came to the window but he was apparently getting better, and had survived the attempt.
It looks like the Pontiff is nearing the end.
My comments are merely observations of a skinny older man with raft of health issues, seeing a fat older man with a raft of health issues such as poor circulation, lung infections unable to be knocked back by drugs due to drug effects leading to what appears to be renal failure going by the bloating, and who knows what else the man has going on in this “complex situation”. My prayer, as always, including for self, is that God’s will be done, and not mine. I pity him as a person, as no true Christian wishes to see anyone suffer, good man or evil man. His decline a valuable reminder to us all that we all come to this sooner or later, and often sooned than hoped or expected.
Sadly I don’t think the Pope is going to make it. I say this from personal experience with elderly loved ones who were hospitalized at an advanced age.