Watchdog takes over Financial Pacific for 2nd time

PANAMA’S  financial regulators are again investigating Financial Pacific, and for the second time the firm is being operated by the Superintendency of Market Securities. (SMV) The  agency on Wednesday July2 appointed an independent controller of the house.

The agency cited administrative issues,  the second time in two years this has happened. The company, has-been in the hands of the Brazilian group Mendo Sampaio since 2013, and it had been initiating a process of re-organization when the SMV took action. The controller will be Dalys Terán, former head of the Unit of Financial Analysis (UAF) in the administration of Mireya Moscoso

The first time the SMV Investigated the brokerage house, in 2012, it suspended its license, which was re-instated in 2013 when then managers then Ivan Valdes and West Clare and sold the operation to Mendo Sampaio.

The license was suspended due to the embezzlement of $12 million from the firm resulting in criminal complaints for fraud, falsification of documents and money laundering.

While the new executives had complied with the adjustments required to end the suspension, the SMV had evidence that the management of the firm was not optimal.

Terán must file a Report with the SMV detailing the administrative and financial realities of the firm.

A witness in an upcoming court case related to the disappearance of the funds, was recently stabbed three time, the head of SMV resigned because of threats, and an auditor who originally uncovered problems, went missing.