The leaders of the nonprofit foundation Nóos Institute, Iñaki Urdangarin, then Duke of Palma de Mallorca, and his business partner Diego Torres have been accused of using Nóos and a corporate network of companies to embezzle about 6 million euros ($6.6 million) in public funds for sporting events, perverting the course of justice, falsification and money laundering.
In December 2011, the judge attendant of the Palma Arena case, José Castro, charged nine individuals.
[3] The main defendants have been: In February 2006, Antoni Dieguez, a Socialist representative in the Balearic Parliament, said that the Government chaired by Jaume Matas had paid 1.2 million euros to the Nóos Institute for a 3-day forum on tourism and sport from 22 until 25 November 2005, with minimal impact.
[10][11] in the Palma Arena records police found two collaboration agreements between the Balearic Government and the Nóos Institute.
The magistrate Jose Castro found sufficient cause to open a separate case, misappropriation of public funds, embezzlement of public funds and fraudulent administration.