Criminal charges loom for bankrupt Generosa.

JOSÉ LUIS FORD, former president of Panama’s Chamber of Commerce has been prohibited from leaving the country following the bankruptcy of the firm La Generosa.

The 13th Circuit Civil Court has ordered the bankruptcy retroactive to December 2014.

The measure involves the seizure of all assets of the company, the appointment of a conservator and the confinement of Ford to the country as criminal charges loom.

 The court also ordered the retention of all funds that the finance company has in the banking system.

Ramon Justavino Peralta was appointed as conservator and will oversee the liquidation.

The firm owes about $20 million to investors who bought bonds and negotiable securities to finance its operations.

The company also faces criminal charges filed as the result of a complaint by ABS Trust in January.

The complaint says the firm did not keep proper financial records.

The failure of the firm, the collapse of RG Hotels  and the manipulation of Petaquilla  shares sent earlier shock waves through Panama’s financial system