Luis Castillo Denies Diverting Funds from Gran Hotel El Campello

The president of the Alicante Provincial Hotel Association (APHA), Luis Castillo, defended his role in the Hoteles Carolina company during his testimony at the Alicante Provincial Court on Monday, in the trial over alleged fund diversion from the Gran Hotel de El Campello. His statement focused on emphasizing that he never had an operational role in managing the establishment, and his involvement was limited to promoting the project and ensuring its viability when new partners joined.

The brothers Juan Carlos and Luis Castillo face five years in prison for embezzlement. For two other businessmen, Antonio N. and his son Luis Enrique, the Public Prosecutor's Office requests another five years for embezzlement and an additional two and a half years for fraud, as alleged collaborators in a scheme that allegedly concealed financial movements from the exploitation of the tourist establishment, according to private and public accusations.

The Hoteles Carolina SL company was established in 2010 by the Castillo brothers with the intention of managing the 100-room establishment with sea views. From the outset, Luis served as the sole administrator, while Juan Carlos accompanied him as a partner and also an administrator for a time. Both explained during the oral hearing that the company faced a challenging time from the beginning, with recurring losses, distrust from suppliers, and a business volume that, although considerable, did not generate profits for the partners.

On one hand, Luis Castillo admitted to taking over management when the hotel was already facing severe financial problems, including a deficit of over 154,000 euros. He also expressed that the goal was to keep the company afloat and that loans were guaranteed for this purpose, although ultimately the business did not succeed.

On the other hand, Juan Carlos Castillo denied any embezzlement and stated that the fund withdrawals he made - for example, a withdrawal of 70,000 euros to Olaf W. (the complainant) - corresponded to loan repayments and movements within normal business operations. Both insisted that the business was a "failure" and that they acted transparently.

Other partners joined the company through a capital increase, including Olaf W., who held 10% of the shares and became the complainant. Juan Carlos Castillo ceased to be an administrator in November 2011, transferring his management to Antonio, who in turn kept the company in a delicate financial state.

According to his testimony, he met Antonio as a potential buyer. "He was introduced to me when I was president of Lucentum. I did not handle the material management of the hotel, I simply helped if asked." On October 28, 2011, Castillo transferred his shares to Antonio and, since then, formally disengaged from the company.

Furthermore, he denied any relationship with the company Hospedantique SL, investigated for alleged irregular transfers from Hoteles Carolina. He also claimed to be unaware of its constitution and recalled that it was created by Luis Enrique N., Antonio's son, without his or his brother's involvement.

Regarding the company Josector San Luis SL, also investigated in the case, he explained that it served as a guarantor for a loan requested by Hoteles Carolina. "We had to answer for the people we brought in as partners. We risked a lot, so we did everything necessary to meet the commitments made." He also insisted that his decision to guarantee the loan was a "show of confidence" in the project, which ultimately was not profitable. "We made a mistake, it did not go well for anyone," he lamented.

Luis Castillo defended that no other partner accused him of embezzling money or acting irregularly. "I maintain an excellent relationship with all four. I never had a joint account with Antonio." He also wanted to highlight that the Court of Instruction No. 9 dismissed a previous complaint against Carolina after an audit concluded that the management "was perfect." "We lost a fortune. As I tell my brother: this has been like doing a master's degree," he concluded.

The oral hearing also brought to light personal tensions between the partners. Antonio N. described episodes of direct confrontation, including threats and a complaint for an alleged kidnapping attempt by Olaf, from which he was acquitted. Meanwhile, the Castillo brothers described him as obsessive and hostile, claiming that the case was driven by personal hatred and that the complainant had committed acts of defamation against them.

In contrast, the complainant described a very different situation, claiming that he was excluded from key decisions and that from the beginning he lived in "eternal opacity." The lack of access to accounting and the refusal to convene shareholder meetings raised his suspicions.

Regarding the reimbursement of 70,000 euros, he argued that it was a personal loan to Juan Carlos Castillo, which was later returned by the company without his formal consent, a move he considers "irregular," although he admitted signing the receipt "without reading it." He also accused the Castillo brothers of "emptying the accounts" and leaving the company with debt and an eviction sentence for non-payment of rent, which questions the management of the accused.

Antonio took over the management of the Gran Campello Hotel at a difficult time. After acquiring the shares of almost all partners, except Olaf and Salvador, he found himself with a loss-making business and distrustful suppliers. The hotel, located at Calle Benissa 9, struggled to stay afloat.

Hospedantique, the company established by his son and of which Antonio was the administrator, played a key role in sustaining the operation. Between Hoteles Carolina and Hospedantique, there were continuous fund movements, which were transferred to cover essential payments and expenses. When one of the companies needed money, they were compensated through these transfers, as he explained during the oral hearing.

During his management, numerous provisions were recorded, which were quickly used to pay suppliers and maintain activity. Antonio declared that Olaf, with only a few appearances in the company, constantly caused problems, even behaving "intimidatingly," which led to complaints against him.

Because the Hoteles Carolina account was seized, part of the income, such as that from travel with tour operators, was managed through Hospedantique to cover salaries, suppliers, and bills. Antonio insisted that these maneuvers were not done secretly, and that the partners who attended the meetings were informed, as he explained to the magistrates.

The administrator emphasized that when he took control of the company, the financial situation was "critical," with a debt of over 150,000 euros. Therefore, he proposed two solutions to the partners: file for bankruptcy or increase capital. To try to save the company, he sought help from his son, who offered guarantees to Social Security, including a chalet that he ended up losing, as well as a loan to pay part of the social obligations and request deferrals. Antonio also ceded a plot valued at 100,000 euros to the company in exchange for shares, in an attempt to reactivate the situation, he explained.

Luis Enrique N., Antonio's son, appeared before the court to dissociate himself from any real management in the Hospedantique SL company, which is listed as a recipient of part of the funds from Hoteles Carolina SL, the central company in the scheme. The defendant claimed that he established the company at a very young age, "at 24 or 25 years old," at the express request of his father. Although he was formally listed as the sole administrator until May 2013, he emphasized that he never assumed executive functions or made relevant decisions: "From day one, my father took care of everything."

Luis Enrique wanted to make it clear that he did not gain any benefit, nor did he receive any remuneration from the company. Regarding the cash withdrawals and card payments made from the Hospedantique account, he maintained that he "had no idea" and was unaware of how many accounts the company had. He also acknowledged that he knew the main account of Hoteles Carolina was seized, but he had no further financial information.

He also detailed that he lost a house in Altea that he had put up as collateral in the process, something that, according to him, demonstrates that his involvement was more nominal than real and that he directly suffered the consequences. "Most of what I know about this case I learned through the judicial process," he stated. Antonio regretted involving his son in this complicated scheme, affirming that he had no decision-making role in the hotel's management.