Rodrigo Rato, former Managing Director of the International Monetary Fund (IMF) and ex-Economy Minister of Spain, has been sentenced to over four years in prison by a Madrid court for multiple financial crimes.
The court announced its verdict on Friday, December 20, convicting Rato of three counts of tax evasion, one count of money laundering, and one count of corruption in private transactions. The sentencing follows a protracted nine-year investigation and a year-long trial.
Rato, 75, who also chaired Spanish lender Bankia from 2010 to 2012, was handed a prison term of four years, nine months, and one day. He was also ordered to pay fines exceeding €2 million, alongside €568,413 in restitution to Spain’s tax authorities.
Although the sentence is subject to appeal at the Supreme Court, Rato will remain free pending the final ruling, according to court officials.
This is not Rato’s first brush with the law. In 2017, he served two years in prison for embezzlement during his tenure at Bankia, where he misused corporate credit cards for personal expenses, including luxury goods, vacations, and designer clothing.
In the latest case, prosecutors had sought a cumulative 63-year prison term for 11 charges, including corruption and financial mismanagement. The court, however, found sufficient evidence for convictions on five counts.
During the trial, Rato’s defense lawyer, María Massó of Baker McKenzie, argued that his rights had been violated during a 2015 police raid, rendering the evidence inadmissible. Despite these claims, the court admitted the evidence and delivered its ruling.
The court’s decision adds another chapter to the legal troubles of the former conservative People’s Party (PP) deputy prime minister, who has consistently denied any wrongdoing.
Rato, who led the IMF from 2004 to 2007, was acquitted in a separate trial related to Bankia’s 2012 stock market listing. However, this latest conviction underscores ongoing efforts by Spanish authorities to address high-profile financial crimes.
