Martinelli facing stock manipulation investigation

FORMER PRESIDENT Ricardo Martinelli may not feel so safe in his U.S. Hideout as yet another criminal case involving him, heads for the Supreme Court. This one relates to alleged “anomalies” in the acquisition of shares of Petaquilla Minerals listed on the New York, Toronto and Frankfurt Stock  Exchanges.

As the shares were listed on The New York and Toronto Stock Exchanges, the uncovering of the manipulation could lead to action by the US and Canadian authorities
The Superintendency of Stock Markets (SMV) has sent the Court details of proceedings including the handling of privileged information between Petaquilla employees and the Financial Pacific (FP) brokerage in accounts linked to Martinelli and which could have harmed investors.
The SMV sent a summary to determine the alleged commission of financial crimes Martinelli. The record was filed in the office of Judge Hernán De Leon, and contains a number of findings made by the liquidator of FP, Jose Angel Hidrogo.
In the investigations possible violations of the Stock Market Law, related to a group of investment accounts -whose members, directors, signatories and beneficiaries may have committed acts described in Article 243 of the Penal Code-, were discovered.
The article states that “who in their own or a third benefit seizes, cause an illegal transfer or makes improper use of money, shares or other financial resources of a company, banking company, financial company or another that captures or mediates with financial resources from the public or which has been trusted to it, or perform these behaviors through informatics manipulation, fraudulent or by technological means, would be punished with four to six years in prison.”
It also reported the existence of the handling of privileged information between FP and Petaquilla staff in accounts that include Martinelli. These actions could have resulted in damage to Panamanian and foreign investors.
Martinelli opened an investment account number 100240 in FP, which made investments in Petaquilla in 2009, when he held the position of President of the Republic, placing him in a privileged and conflict of interests position as a servant of the Government, since the company had a mining concession granted by the Ministry of Trade and Industry.