Arrest warrant for ex-president of bust Colombia brokerage firm

Interbolsa office (Photo: Octavio Gomez)

Colombia’s Prosecutor General’s Office has demanded the arrest of the former president of brokerage firm InterBolsa, which was liquidated in 2012 for what was then one of the biggest financial scandals in the country’s history, local media reported on Monday.

For abuse of authority, prosecutor Alexandra Ladino has asked Tribunal 33 to issue an arrest warrant for the former president and two members of the Risk Committee of what was once the largest brokerage firm in Colombia, InterBolsa.

MORE: InterBolsa committed ‘substantial tax evasion’: Comptroller General

The former president of InterBolsa, Alvaro de Jesus Tirado, and board members Luis Fernando Restrepo and Alvaro Andres Camaro will see their fate decided upon within the next few hours, over which the responsible judge will decide whether or not they go to jail for issuing loans which led to the liquidation of the firm in 2012.

According to the Prosecutor General’s Office (PGO), the three individuals abused their power by allowing a loan being issued to a company named Fabricato S.A., while fully aware that there were irregularities causing a rise in share values.

“It was clear that they knew that the brokerage firm was under threat of a financial collapse, which would not have allowed them to fulfil their acquired obligations,” the PGO’s report reads.

By meeting the requests of primary stockholder of Fabricato, Italian investor Alessandro Corridori, they disregarded the risk assessment, which requires the verification of the current state of businesses asking for loans. Corridori is currently being investigated surrounding the same case.

MORE: Colombia’s financial superintendent dismissed over Interbolsa scandal

Prosecutor Ladino stated that their actions led to the embezzlement of over $32.5 million from the brokerage firm — which had to be covered by the Colombian government — and which eventually ended with the liquidation of the firm in November 2012.

Tirado, Restrepo and Camaro will consequently have to face charges of conspiracy, improper management and falsification of documents.

Thousands of clients suffered heavy losses as a result of the scandal, for which the PGO considers the three accused to be a risk to society and to the correct implementation of justice.

The PGO’s report explains how Fabricato saw one of the country’s greatest share value boosts in 2011, when their market value more than tripled between January and December.

The investigation involves allegations of drug trafficking and money laundering.

MORE: Colombian lawmaker suspects link between InterBolsa, ‘El Loco Barrera’

MORE: Interbolsa scandal’s ‘missing link’ to be extradited to U.S.

Interbolsa is a Colombian group which holds various companies, including in the financial sector. The investors’ money is in the hands of companies such as Bancolombia, who will answer for the damages, due to which investors should not be losing money.

Sources

Related posts

Colombia’s prosecution confirms plea deal with jailed former UNGRD chiefs

Arsonists set home of Colombia’s land restitution chief on fire

Colombia and Russia “reactivate” bilateral ties