Three former executives of a bank in the system were acquitted on Tuesday, September 10, in the Bantrab-Elgin case, a trial in which they were accused of committing the same number of crimes, judicial sources reported.
They are Ronald García Navarijo, who was accused by the Public Prosecutor’s Office (MP) of illicit association, embezzlement and money laundering; Sergio Aníbal Hernández Lemus, of illicit association, money laundering and embezzlement, and Astrid Ileana Overbeck, accused of legal association and money laundering.
The Court determined that no crimes were committed and that the bank cannot engage in money laundering, since it was proven that Astrid Ileana Overbeck paid the corresponding taxes for the issuance of said documents as fees.
Case details
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According to a statement from the now defunct International Commission against Impunity in Guatemala (CICIG) published on October 28, 2016, the Workers’ Bank is a mixed entity formed with public and private funds, in which the State of Guatemala has a shareholding. The rest of the shareholders, private, are mostly workers.
He added that it was created according to its purposes to “satisfy the financial needs of workers, farmers, low-income people and companies or businesses that contribute to employment in the country” and that the president of the Board of Directors of the bank is appointed by the President of the Republic, complying with the protocol of a public servant.
However, it details that on July 30, 2009, Banco de los Trabajadores acquired a portfolio of loans from the trust for the administration and realization of assets excluded from Banco del Café for Q24 million, which included 10 loans, in which Villas de Elgin, SA appeared as the debtor, with a mortgage guarantee on 10 properties registered in the Property Registry.
But on August 24, 2010, faced with the inability to pay the mortgage loans, Villas de Elgin, SA, awarded the 10 properties to the Workers’ Bank in payment, which were valued at Q7 million, according to the report.
He adds that, Being extraordinary assets and pursuant to Article 54 of the Law on Banks and Financial Groups, the Workers’ Bank was forced to sell the 10 properties.
“The price paid to Bantrab by Desarrollos 2812 SA in the 2 transactions with which it acquired the 10 properties was Q4 million, an amount lower than the value assigned in the bank appraisal carried out by Bantrab itself, which was Q7 million,” he details.
The investigation at that time indicated that members of the bank’s Board of Directors committed “criminal acts.”
He points out that Bantrab authorized the payment of Q5.5 million to a bank lawyer, simulating a payment of fees and that the money received by the employee was later transferred to shell companies linked to the bank’s executives.
“The funds, which ended up in the entity Desarrollos 2812, were used to acquire 10 properties in Villas de Elgin at an undervalued price, which were part of the extraordinary assets of the same banking entity,” the report states.
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#Court #acquits #bank #executives #accused #money #laundering
Bantrab-Elgin Case: Former Executives Acquitted of Embezzlement and Money Laundering Charges
In a significant development, three former executives of Banco de los Trabajadores (Workers’ Bank) were acquitted on September 10 in the Bantrab-Elgin case, a trial that accused them of committing multiple crimes, including embezzlement and money laundering. The acquitted executives are Ronald García Navarijo, Sergio Aníbal Hernández Lemus, and Astrid Ileana Overbeck.
According to judicial sources, the Court determined that no crimes were committed, and the bank cannot engage in money laundering, as Astrid Ileana Overbeck paid the corresponding taxes for the issuance of said documents as fees [[1]].
Background of the Case
The Workers’ Bank is a mixed entity formed with public and private funds, in which the State of Guatemala has a shareholding. The rest of the shareholders, private, are mostly workers [[2]]. The bank was created to satisfy the financial needs of workers, farmers, low-income people, and companies or businesses that contribute to employment in the country. The president of the Board of Directors of the bank is appointed by the President of the Republic, complying with the protocol of a public servant.
In 2009, Banco de los Trabajadores acquired a portfolio of loans from the trust for the administration and realization of assets excluded from Banco del Café for Q24 million, which included 10 loans, in which Villas de Elgin, SA appeared as the debtor, with a mortgage guarantee on 10 properties registered in the Property Registry. However, faced with the inability to pay the mortgage loans, Villas de Elgin, SA, awarded the 10 properties to the Workers’ Bank in payment, which were valued at Q7 million.
The Investigation
The investigation revealed that the bank’s Board of Directors committed “criminal acts.” Bantrab authorized the payment of Q5.5 million to a bank lawyer, simulating a payment of fees, and the money received by the employee was later transferred to shell companies linked to the bank’s executives. The funds, which ended up in the entity Desarrollos 2812, were used to acquire 10 properties in Villas de Elgin at an undervalued price, which were part of the extrajudicial assets of the bank [[2]].
Financial Statements of the Bank
The audited financial statements of Banco de los Trabajadores as at December 31, 2016, are publicly available, which provides transparency into the bank’s financial operations [[3]].
Conclusion
The acquittal of the three former executives of Banco de los Trabajadores in the Bantrab-Elgin case brings closure to a significant trial that had implicated top bank officials in embezzlement and money laundering charges. The case highlights the importance of transparency and accountability in the banking sector, and the need for effective regulation and oversight to prevent such incidents in the future.
What were the main accusations against the former executives of Bantrab in the Bantrab-Elgin case?
The Bantrab-Elgin Case: Understanding the Recent Acquittal of Former Executives
On September 10, 2024, three former executives of Banco de los Trabajadores (Bantrab) were acquitted in the Bantrab-Elgin case, a trial in which they were accused of committing various crimes, including illicit association, embezzlement, and money laundering. The acquittal has sparked interest in the details of the case, which involves the sale of properties and alleged criminal acts by members of the bank’s Board of Directors.
Case Background
Bantrab is a mixed entity formed with public and private funds, with the State of Guatemala holding a shareholding and private shareholders comprising mostly workers. The bank was created to satisfy the financial needs of workers, farmers, low-income people, and companies or businesses that contribute to employment in the country [[3]].
In 2009, Bantrab acquired a portfolio of loans from the trust for the administration and realization of assets excluded from Banco del Café, which included 10 loans with Villas de Elgin, SA as the debtor, with a mortgage guarantee on 10 properties registered in the Property Registry [[3]]. When Villas de Elgin, SA was unable to pay the mortgage loans, the company awarded the 10 properties to Bantrab in payment, valued at Q7 million [[3]].
The Investigation and Accusations
The investigation indicated that members of Bantrab’s Board of Directors committed “criminal acts” [[3]]. The accused executives, Ronald García Navarijo, Sergio Aníbal Hernández Lemus, and Astrid Ileana Overbeck, were charged with various crimes, including illicit association, embezzlement, and money laundering [[3]].
However, the Court determined that no crimes were committed and that Bantrab cannot engage in money laundering, as Astrid Ileana Overbeck had paid the corresponding taxes for the issuance of said documents as fees [[3]].
Other Bantrab-Related Developments
In an unrelated development, Luis Suárez was removed from his position as president of Bantrab and replaced by Carol Angélica Quirós de Mejía [[3]]. This change in leadership has no direct connection to the Bantrab-Elgin case.
Other Mentions of Bantrab
Bantrab has been mentioned in other contexts, including in relation to the former President of Peru, Alberto Fujimori, who was imprisoned for 10 years [[2]]. Additionally, a poet and author, Julio Serrano Echeverría, is a co-founder of the agency @agenciaocote, and has been mentioned in connection with Bantrab [[1]].
Conclusion
The Bantrab-Elgin case is a complex and intriguing matter that has sparked interest in the financial sector and beyond. The acquittal of the former executives has raised questions about the bank’s operations and the actions of its Board of Directors. As more information becomes available, the public will continue to follow developments in this case and its implications for Bantrab and the broader financial community.
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