Brokerage scandal investigation may be nearing close

THE INVESTIGATION into a financial scandal during which an auditor disappeared, allegations surfaced of a secret account to manipulate the stock market, $12 million vanished, while the courts dragged their heels, is perhaps nearing completion.

So says the new government appointee to head the Superintendency of Securities (VPS)Juan Manuel Martans.

Martans was ratified unanimously on Wednesday, March 26, as head of the SMV in the Legislative Committee on Credentials replacing Alejandro Abood.
The administrative investigation of the brokerage Financial Pacific (FP) has raised questions for 17 months since the affair first broke, with many strange twists and turns and only one person behind bars.
On the case of FP, said that although it is a very technical and complex subject there is some research nearing completion .
Investigations against FP began when October 2012 the SMV ordered the reorganization of this brokerage become clear after a shortfall of $ 12 million.
During the scandal two criminal complaints were filed, one against the brokerage firm for possible money laundering, fraud and forgery of documents, the other against a former employee of FP, Mayte Pellegrini, who remains detained.
Pellegrini, during an investigation process, says irregularities in the management of the brokerage included the existence of a secret account called High Spirit, which was opened to manipulate stock market shares. Reports La Prensa
Pellegrini also said that the directors of FP, Iván Clare and West Valdés, had publicly said that the secret account " is Mr. [ President ] Ricardo Martinelli … " .
Martans, said the SMV department in charge of the investigation will determine whether or not there was FP responsibility of the FP While the prosecution has to define criminal liability.