Prosecutors come up with new evidence against king's son-in-law

Anti-corruption prosecutors will present new evidence next month against Iñaki Urdangarin, the husband of Princess Cristina, and his former business partner Diego Torres alleging fraud and influence peddling stemming from contracts they received from the Balearic government.

Prosecutors have gathered information from the Finance Ministry that reportedly shows that Urdangarin's supposedly non-profit Nóos Institute charged 2.1 million euros to the Balearic government of which 878,000 euros could not be justified as expenses for the organization. The prosecutors are expected to ask a judge investigating the case in Mallorca to order Urdangarin and Torres to post a four-million-euro bond -- the same amount that investigators say was illegally obtained by the two men.

The royal son-in-law and Torres have been formally targeted as suspects in the case in which investigators say they obtained some five million euros in contracts between 2004 and 2007 to organize sports and tourism conferences. The case has been ongoing for more than a year. Urdangarin faces three charges: influence peddling, public fraud and embezzlement.

Prosecutors said that they found that in some cases the Nóos Institute was filing bills for work before it was commissioned.

The judge investigating the case will soon receive the conclusions of three judicial commissions sent to Andorra, Switzerland and Luxembourg where Urdangarin is said to have opened bank accounts, sources say. The royal family member could be charged with tax evasion if the results of the investigation show that he deposited money in those tax havens.