Savings Unlimited’s Milanes agrees to pay $578,000 in two payments

Luis Angel Milanes (Archive image).

October 9^th, 2013 (InsideCostaRica.com) Luis Angel Milanes Tamayo Coto, the Cuban-American who is accused of defrauding 500 mostly American and Canadian investors when his Costa Rica-based high-yield investment program, Savings Unlimited, shut down 11 years ago, has agreed to make two payments totaling $578,000 to affected investors.

The move comes a couple of weeks before a hearing scheduled for October 28^th, in which judges wish to determine if Milanes has continued to fulfill an agreement to return funds to investors as part of a settlement to avoid criminal prosecution.

Attorney Jose Joaquin Ureña, who represents Milanes, told La Nacion that his client offered to make a payment of $300,000 this month, and an additional payment of $278,000 in November.

“We spoke to the victims and we reached an agreement with a person representing half of the offended,” Ureña said.

The $578,000 represents a lump sum payment that Milanes had agreed to pay investors by November 23^rd, 2012, in addition to monthly payments of $100,000.

Investors claimed that the $578,000 lump sum payment was not made, which would be a breach of the settlement, in which case Milanes would face potential criminal prosecution.

The payments are part of a settlement in which Milanes agreed to pay $1.8 million in cash and put into trust nine properties valued at $12 million.