It has emerged that Colombian soccer champions Millonarios will be forced to pay off a $2.2million debt to a company connected with scandalized brokerage firm InterBolsa.
The money is owed to Securities Incorporated, a company fronted by Juan Carlos Ortiz and a circle of partners all linked to InterBolsa, a brokerage company which was recently liquidated by the Colombian government for failing to make a payment on an $11 million loan.
Ortiz and his partners invested heavily into Millonarios when the clus was going through financial difficulties in 2011. The investments by Ortiz and others were used to pay off the club’s debts and invest in new players. In turn, the investing group, which also includes Carlos ‘Talo’ Mejia, Alessandro Corridori, Alejandro Martinez and Luis David Pena, gained a 48.5% share in the club.
The club previously released a statement denying any direct relationship with InterBolsa and insisted that although its shareholders are linked to InterBolsa, this relationship would present “no risk in any way” regarding the team’s finances.
However, Caracol Radio on Friday reported that the club will be forced to use part of the $2.5 million raised from ticket sales from the recent final with Independiente Medellin to pay off the investment made by Ortiz’s consortium.
In another twist, the $1.4 million from ticket sales was intended to go to Millonarios players as bonuses for winning the club’s first championship since 1988.
Following the revelation, the team released a statement defending its dealings in the stock market, and in particular Sociedad Azul y Blanco — the company created to sell the club’s shares on the stock market.
“Sociedad Azul y Blanco has a loan which meets all the current standards. It is a solid company, committed to management excellence…with strict rules of transparency in all its actions,” read the statement.
Although it failed to mention the amount of the debt, Caracol Radio reported that the debt was in the $3.3 million range, a revised amount due to the interest accrued.
Ever since Millonarios were forced to sell shares on the stock exchange due to its dire 2011 financial state, then club President, Jose Arañgo insisted that full background checks be carried out on all potential investors.
He also said that all dealings would be transparent to avoid potential investment from illegal groups and persons which have tainted the club’s history.