President linked to financial scandal – report

What was believed to be an isolated case of financial fraud in a brokerage had mushroomed into a major scandal which is shaking the financial center.

There are allegations of share manipulation, and links leading directly to President Ricardo Martinelli.

At the center of the scandal said La Prensa on Wednesday December 26 is Financial Pacific and “what we see is only a fraction of a complex financial organization.”
The newspaper carries a detailed report on the government’s rush to allow the operation of the Petaquilla mine in spite of protests from the indigenous community, environmentalists and union. Share prices rocketed from 22 cents to $1.25 making vast profits for insiders.
Rumors about the involvement of high level political figures have been circulating since the mine opened.
There were two criminal complaints. One against Financial for possible money laundering, fraud and forgery of documents, the other againsta trusted ex-employee Mayte Pellegrini. During the investigation process, Pellegrini said the irregularities in the management of the brokerage included the existence of a secret account called High Spirit, which was opened to manipulate shares and  Pellegrini refers to the values of Petaquilla Minerals.
She revealed that managers of Financial Pacific, and West Valdes, and Ivan Clare had said publicly that the secret account "is Mr. Ricardo Martinelli …"
This has led to a deepening inquirey into the assertion of the existence of an account whose aim was to "manipulate the stock market with shares of Petaquilla".
In the extension of the investigation, again Pellegrini hinted at the involvement of president, Ricardo Martinelli. This time with reference to the possible opening of a bank to be called Bank FP to take the initial value of the house. .
The announcement of the imminent opening of the bank said Pellegrini, was in June 2011 and she lists names of those present at a meeting including Ricardo Martinelli. Pellegrini's story to the prosecutor came out between November 22 amd 28 2012. The procedure is part of the process of the complaint filed on July 26 by the directors of Financial Pacific, Clare and Valdés, to the Attorney General, for the embezzlement of $7 million, that as research progresses has grown to around $14 million
The case gained national notoriety and raised suspicions when Alejandro Moncada, chief justice of the Supreme Court, granted a guarantee protection for Financial Pacific, says La Prensa.
The measure completely stopped the reorganization process initiated by the Superintendency of Securities Market. that was forced to issue an order suspending the brokerage operations.
La Prensa says it tried to get a reaction to the accusations against President Martinelli during Financial Pacific investigation, but at press time had no response.
On Thursday December 20 and Friday December 21 emails were sent to his personal account and calls were made his private phone. His spokesman, Luis Eduardo Camacho, did not answer calls.
"For about two years, many people in the financial industry speaks of investments of high profile officials in the mining business. It would be good to do some research" said a source close to the sector.