79-Year-Old Retiree on Trial for Withholding €11K Employee Social Security Funds

A 79-year-old retiree stood trial at the Tribunal de Corts on charges of continued major misappropriation after failing to forward more than €11,277 in employees' social security contributions to the CASS from his metalworking business in 2013 and 2014.

Prosecutors presented documentary evidence showing the defendant, as the sole partner responsible for managing invoices and payments, deducted workers' shares during the firm's financial difficulties but did not transfer them. They sought the minimum penalty of one year in suspended prison, four years' suspension, and full repayment of the civil liability. The private prosecution stressed the direct financial harm to employees and potential severe consequences from the unpaid contributions.

The defence countered that the actual unpaid amount was around €2,897, with no evidence of intent to profit. They argued the delays stemmed from the company accountant and external firm, bank rejections for lack of funds, and the business's 2014 bankruptcy, which left debts over €280,000 after nearly 20 years. As sole partner but not formal administrator, he lacked direct control over funds and attempted to save the firm, including selling his personal car to pay wages. Now retired, living on a pension in rented accommodation with no assets, he told the court: "Good people can make mistakes, and poor management without intent should not condemn someone."

The defendant opted not to testify, with his lawyer noting his late awareness of the issue due to outsourced accounting. Witnesses included a former administrative employee who handled invoices and CASS payments in the business's final months, confirming delays but not precise figures, and a long-term worker employed for 17 years who said payments lagged as debts mounted. The former worker added he received no CASS notices about shortfalls and recalled salary payment struggles before closure.

The court heard all evidence and testimony before adjourning. No verdict date has been set.