Pacific Financial propped up with $12.2 million

In the midst of investigations into criminal charges of money laundering, forgery and fraud, Pacific Financial managers (FP) have announced the deposit of a check for $12.2 million to cover possible losses to clients.

It is another chapter  in the ongoing  financial scandal which has included allegations of President Martinelli  links to the brokerage. He has refused to discuss the allegations referring to the reports as a media "soap opera".

In a statement issued Friday , Jan 4, to the Superintendency, FP reported that on Wednesday January 3 : "shareholders, in a joint effort, have managed to replace the client money that was illegally stolen from Financial Pacific, Inc".

SMV officials visited the offices of FP to determine if indeed the $12. 2 million was deposited into the bank accounts of customers. says La Prensa
The FP brokerage has been under scrutiny in recent weeks, after the SMV suspended its license on November 7, 2012, for lack of oversight of employees who allegedly stole the millions, and administrative irregularities that included the offering of financial products outside its operating range.
At this point, the SMV found that the controls in the brokerage are not enough to again be granted a license that allows it to perform the activities of buying and selling securities.
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