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In Royal Drama, Spain Sees Its Reality Reflected In Royal Drama, Spain Sees Its Reality Reflected
(7 months later)
BARCELONA, Spain — Once upon a time, Spain’s Princess Cristina and her husband lived a life of royal splendor. Ensconced in a hillside mansion with a saltwater swimming pool outside Barcelona, they jaunted off to sailing regattas and charity balls with the Spanish elite. BARCELONA, Spain — Once upon a time, Spain’s Princess Cristina and her husband lived a life of royal splendor. Ensconced in a hillside mansion with a saltwater swimming pool outside Barcelona, they jaunted off to sailing regattas and charity balls with the Spanish elite.
Now, as the princess prepares to testify before a judge on Saturday, the couple’s storybook life is being exposed as something far more familiar to Spaniards: a chimera of wealth and high living built on credit-card spending sprees, mortgage debt and, potentially, tax evasion and money laundering.Now, as the princess prepares to testify before a judge on Saturday, the couple’s storybook life is being exposed as something far more familiar to Spaniards: a chimera of wealth and high living built on credit-card spending sprees, mortgage debt and, potentially, tax evasion and money laundering.
The appearance of Princess Cristina, 48, will be the first time that a direct member of Spain’s royal family has been called to account in such a common way, as she is made to answer questions about her spending habits, large and small, before a judge investigating the business dealings of her husband, Iñaki Urdangarin, the Duke of Palma.The appearance of Princess Cristina, 48, will be the first time that a direct member of Spain’s royal family has been called to account in such a common way, as she is made to answer questions about her spending habits, large and small, before a judge investigating the business dealings of her husband, Iñaki Urdangarin, the Duke of Palma.
In November, the couple lost their home of nine years when it and three other properties were seized for a civil bond of more than $10 million that her husband and his now-estranged business partner, Diego Torres, were forced to pay as they defend against accusations of using royal connections to gain no-bid contracts from Spain’s regional governments to run sports conferences, and then laundering millions of euros in profits off shore.In November, the couple lost their home of nine years when it and three other properties were seized for a civil bond of more than $10 million that her husband and his now-estranged business partner, Diego Torres, were forced to pay as they defend against accusations of using royal connections to gain no-bid contracts from Spain’s regional governments to run sports conferences, and then laundering millions of euros in profits off shore.
Even as the case stokes debate about whether Spain’s aristocrats are held to the same judicial standards as others, it has become a morality tale of excess whose themes are common enough in a country where the receding economic tide since 2008 has exposed corruption and mismanagement all around.Even as the case stokes debate about whether Spain’s aristocrats are held to the same judicial standards as others, it has become a morality tale of excess whose themes are common enough in a country where the receding economic tide since 2008 has exposed corruption and mismanagement all around.
In a summary of more than 200 pages, the judge calculated that the remodeling of one floor of the princess’s dream house — the little palace, as it is known here — was paid for with $596,000 in credit card charges attached to a real estate company owned by the princess and her husband called Aizoon. There were receipts for $57,000 for art, decorations, appliances and rugs. She also paid $269,000 for an architect and $12,500 for curtains.In a summary of more than 200 pages, the judge calculated that the remodeling of one floor of the princess’s dream house — the little palace, as it is known here — was paid for with $596,000 in credit card charges attached to a real estate company owned by the princess and her husband called Aizoon. There were receipts for $57,000 for art, decorations, appliances and rugs. She also paid $269,000 for an architect and $12,500 for curtains.
“In summary, Aizoon practiced commercial and fiscal policies that were totally irregular and contrary to current regulations,” the judge wrote. Over an eight-year period dating back to 2004, he noted, the princess made purchases from her own pocket for a total of about $4,000. The rest were paid with the company credit card.“In summary, Aizoon practiced commercial and fiscal policies that were totally irregular and contrary to current regulations,” the judge wrote. Over an eight-year period dating back to 2004, he noted, the princess made purchases from her own pocket for a total of about $4,000. The rest were paid with the company credit card.
The question the judge is investigating is whether some of the money her husband is accused of embezzling, according to investigators, was funneled to essentially a shell real estate company, which they owned jointly.The question the judge is investigating is whether some of the money her husband is accused of embezzling, according to investigators, was funneled to essentially a shell real estate company, which they owned jointly.
But the princess will almost certainly face other questions: Did she know the source of the money that funded huge credit card purchases for her house? And did her father, King Juan Carlos, give her $1.6 million as a loan, or actually a taxable gift?But the princess will almost certainly face other questions: Did she know the source of the money that funded huge credit card purchases for her house? And did her father, King Juan Carlos, give her $1.6 million as a loan, or actually a taxable gift?
Before the princess has even set foot in the closed hearing in Palma de Mallorca, the prospect of her testimony has divided Spanish society. Some have used the long-building scandal to fuel calls for the abdication of the 76-year-old king.Before the princess has even set foot in the closed hearing in Palma de Mallorca, the prospect of her testimony has divided Spanish society. Some have used the long-building scandal to fuel calls for the abdication of the 76-year-old king.
Others have rushed to Cristina’s defense, including Prime Minister Mariano Rajoy, who in a rare television interview in January said that he was “convinced of the innocence of the princess” and that she should not renounce her title because of the scandal, as critics of the palace have demanded.Others have rushed to Cristina’s defense, including Prime Minister Mariano Rajoy, who in a rare television interview in January said that he was “convinced of the innocence of the princess” and that she should not renounce her title because of the scandal, as critics of the palace have demanded.
The Spanish press has obsessively tracked whether the princess will suffer the humiliation of having to enter the courthouse through a common passageway — a kind of royal perp walk — where her husband was earlier jeered. Finally, last week, a senior magistrate declared that rather than walking, the princess could be chauffeured down the courthouse ramp by car, citing security concerns.The Spanish press has obsessively tracked whether the princess will suffer the humiliation of having to enter the courthouse through a common passageway — a kind of royal perp walk — where her husband was earlier jeered. Finally, last week, a senior magistrate declared that rather than walking, the princess could be chauffeured down the courthouse ramp by car, citing security concerns.
A judge has also banned the customary videotaping of testimony, as well as the use of cellphones, tablets and computers in the courtroom by anyone, including the investigating judge.A judge has also banned the customary videotaping of testimony, as well as the use of cellphones, tablets and computers in the courtroom by anyone, including the investigating judge.
The one thing about which royal supporters and critics agree, however, is that the case has chipped the patina of invulnerability that once surrounded the House of Borbón.The one thing about which royal supporters and critics agree, however, is that the case has chipped the patina of invulnerability that once surrounded the House of Borbón.
For the princess, the loss of their fairy-tale mansion in the exclusive Pedralbes district of northern Barcelona was an especially ignominious blow. Today, the mansion stands empty. The couple have moved with their four children to Geneva.For the princess, the loss of their fairy-tale mansion in the exclusive Pedralbes district of northern Barcelona was an especially ignominious blow. Today, the mansion stands empty. The couple have moved with their four children to Geneva.
The princess and her husband purchased the three-story contemporary villa in 2004 for more than $8 million. It was the start of the restyling of the duke, from a former Olympic team handball athlete into a sports event consultant and entrepreneur.The princess and her husband purchased the three-story contemporary villa in 2004 for more than $8 million. It was the start of the restyling of the duke, from a former Olympic team handball athlete into a sports event consultant and entrepreneur.
Miquel Roca, a lawyer for the princess, declined to comment on the case. In the past, though, he has denied that the princess has done anything wrong and insisted that she simply seeks swift justice.Miquel Roca, a lawyer for the princess, declined to comment on the case. In the past, though, he has denied that the princess has done anything wrong and insisted that she simply seeks swift justice.
Mr. Torres, the former business partner under investigation with the duke, has also given notice to the court that the princess does not deserve to be prosecuted. But he remains a gadfly in the royal tale, having supplied investigators with information collected from an encrypted company computer hard drive.Mr. Torres, the former business partner under investigation with the duke, has also given notice to the court that the princess does not deserve to be prosecuted. But he remains a gadfly in the royal tale, having supplied investigators with information collected from an encrypted company computer hard drive.
His lawyer, Manuel González Peeters, said that they continued to find new information as they sifted through documents, including more than 200,000 emails.His lawyer, Manuel González Peeters, said that they continued to find new information as they sifted through documents, including more than 200,000 emails.
“The huge collection of documents demonstrates what I have been saying from the very beginning,” Mr. González said. He argues that the royal palace monitored everything involving the couple. Spanish intelligence agents appeared twice a month to copy information on the company computers, according to the lawyer.“The huge collection of documents demonstrates what I have been saying from the very beginning,” Mr. González said. He argues that the royal palace monitored everything involving the couple. Spanish intelligence agents appeared twice a month to copy information on the company computers, according to the lawyer.
Some of those documents show that early on the royal palace showed great interest in the mansion. One document is a mortgage summary listing the $1.6 million contribution from the king as a “donación” or a gift to help purchase the Barcelona house. Previously, the royal household had characterized the contribution as a notarized loan, which would not be taxable.Some of those documents show that early on the royal palace showed great interest in the mansion. One document is a mortgage summary listing the $1.6 million contribution from the king as a “donación” or a gift to help purchase the Barcelona house. Previously, the royal household had characterized the contribution as a notarized loan, which would not be taxable.
In turn, a 2004 letter offered advice for explaining the purchase of the mansion to the news media.In turn, a 2004 letter offered advice for explaining the purchase of the mansion to the news media.
“Like many Spaniards, they are purchasing their home with credit,” according to talking points sent in an email from Princess Cristina’s private secretary, Carlos García Revenga, to the duke. “Present it so it is natural to buy real estate with all the risks of debt that young people have today.”“Like many Spaniards, they are purchasing their home with credit,” according to talking points sent in an email from Princess Cristina’s private secretary, Carlos García Revenga, to the duke. “Present it so it is natural to buy real estate with all the risks of debt that young people have today.”