The defence team for billionaire financier Aldo Mangione is laying groundwork for a psychiatric defence, according to sources with direct knowledge of the case. The move comes as the Crown Prosecution Service confirms it is monitoring proceedings closely, fearful that a successful insanity plea could set a dangerous legal precedent for white-collar crime.
Mangione, 62, faces 47 counts of fraud, money laundering and bribery after a three-year investigation by the Serious Fraud Office. He is accused of funnelling £2.3bn through a web of shell companies spanning Cyprus, the British Virgin Islands and Dubai. But his lawyers are now arguing that he suffered from a 'severe depressive episode' at the time of the alleged crimes, rendering him unable to form criminal intent.
Court documents obtained by this paper show that Dr Helena Vance, a consultant psychiatrist at the Maudsley Hospital in London, has been retained by the defence. In a preliminary report submitted to Southwark Crown Court, Vance writes that Mangione 'exhibited grandiose delusions and reckless risk-taking consistent with a manic phase of bipolar disorder' during the period of the alleged offences. She further claims that his 'judgment was so impaired that he could not distinguish between legitimate business ventures and fraudulent schemes'.
Prosecutors are pushing back hard. In a counter-filing, the CPS argues that Mangione's behaviour was 'calculated and methodical' and that any mental health issues are 'conveniently timed'. They point to encrypted messages showing Mangione instructing associates to 'bury the paper trail' and 'keep the money moving'.
But the stakes go beyond one man. The case is being watched by financial crime units across Europe and North America. A successful psychiatric defence would be a first in a UK fraud case of this magnitude. 'If Mangione walks on mental health grounds, every crooked financier in London will be booking appointments with shrinks,' a former SFO investigator told me on condition of anonymity.
The CPS has convened a special panel of psychiatrists and legal experts to advise on how to counter the defence. Sources say they are preparing to argue that even if Mangione suffered from a mental disorder, his actions were 'not a direct result' of that condition. They may also call on Dr Vance's own history of being criticised by the General Medical Council for 'overly sympathetic' diagnoses.
Mangione remains on bail at a private psychiatric clinic in Surrey, where he is being treated for what his lawyers call 'acute stress' related to the proceedings. His wife, former model Camilla Mangione, has been seen visiting twice a week. She declined to comment when approached outside the clinic.
The case is due to be heard in a pre-trial hearing next month. If the psychiatric defence is admitted, a full trial could be delayed by up to a year. Meanwhile, the SFO is racing to freeze remaining assets, estimated at £400m, held in trusts in Jersey and Liechtenstein.
One thing is certain: this case is about more than one man's mental state. It is a test of whether Britain's justice system can hold the powerful accountable when they hide behind a diagnosis. And right now, the odds don't look good.
