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Savings
Unlimited No More!
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Sudden closing and disapperance
Early Sunday morning the news swept through
the investment community - Savings Unlimited,
the high interest investment firm run by Luis Milanés,
known as the "Cuban" - was gone. And
with him the hopes and dreams of many
investors, as well as their money.
This all came at the heels of the closing of
the investment house on October 14, of Enrique
Villalobos, well known as "the
Brothers", leaving literally thousands of
investors shocked and bewildered. Some had
invested in both companies, many investing
with Cuban after the Brothers closed
operations.
We can remember, just a few shorts weeks ago,
a young investor was in Costa Rica looking for
a place to put his money and finding out that
the Brothers were not accepting deposits, was
actively negotiating with Savings Unlimited.
We advised him at the time to cool off a bit,
and let the situation unfold before his made
his investment.
On Friday another investor, having taking his
in investment from the Brothers totally
unrelated to the events that were to unfold,
was on the phone with Savings Unlimited to
make an appointment to make a partial witdrawl.
He was was told by the secretaries to come in
on Monday.
By Monday afternoon, the offices on the 9th
floor of the Centro Colon office building on
Paséo Colon was no more. It had been emptied
out the Saturday, unbeknownst to the employees
who showed up for work Monday morning.
By now it was confirmed that the Cuban was
definitely gone and his whereabouts unknown.
According to a confidential source, a former
employee of Milanés, told us that Milanés
had left of Friday. He was not surprised at
all, "it was to be just a matter of
time".
Criminal charges of fraud have being filed
against Milanés and his marketing director
Michael Gonzalez. To date six counts of fraud
have been filed and the a special prosecutor
has been assigned to the case, and will treat
all complaints from investors, as a group
investigation.
Savings Unlimited operated in Costa Rica for
many years, offering 3-4% monthly interest on
a minimum investment, similar to the Brothers.
Reportedly Savings Unlimited had stopped
paying interest two weeks prior to closing and
investors were told that their principal would
be available until January, to allow the
company to complete it's investment in
"slot machines".
Deposits to Savings Unlimited by investors
were made by check or electronic transfers.
Investors were then given a guarantee check in
the amount of the deposit. Interest payments
were made to investors through Costa Rican
bank accounts or their offshore offices.
Investors were issued an account number and
periodic statements of their accounts. Savings
Unlimited had been actively seeking new
investor deposits by offering a "special
4%" deal to new investors with the claim
that it was to be used to expand it's slot
machine business.
Milanés
was widely known to employees and investors as
the owner of the Casino Europa, Royal Dutch
Hotel & Casino, the Costa Rica Morazan Hotel
and Tropical Casino, and the recent
acquisition of the Hotel Europa, all in
downtown San Jose.
There are allegations of criminal complaints
being filed in 2001 against Luis Milanés and
his brother for sexual exploitation of minors.
The complaints allege that the brothers
charged a fee to provide North American
clients sexual services of minors. Clients who
wanted the services were required to stay as
guests of the Hotel Morazan, controlled by
Luis Milanés.
The managers of the casinos and hotels deny
having any relationship with Savings Unlimited
and that Luis Milanés was the owner or
their boss. However, anyone who has had any
dealings with or employed by the casinos and
hotels, can tell you that Milanés was the
boss!
Luis Milanés came started his Savings
Unlimited high yield investment business about
seven years ago. It was during the last four
years that he became a prominent figure as his
Casino Europa flourished and soon became one
of the top casinos in San José.
Two years ago he aquired the then sinking
Royal Dutch Hotel and Casino on Avenida 2,
next to the Banco Costa Rica. Soon after the
take over, the casino and hotel were
renovated, and started attracting customers
and breathed new life. In no time, under the
management of Milanés, the hotel and casino
were again successful.
He
soon followed that up with the purchase and
immediate renovation of the Costa Rica Morazan
Hotel and Tropical Casino, located in the
heart of "Gringo Gulch", next to the
Key Largo bar and down the street from the
Hotel Del Rey and other casinos and bars.
Late last year, he completed the purchase of
the Hotel Europa, on Calle Central and Avenida
5, with plans to renovate the property to
include a casino and along with a couple of
prominent night clubs nearby, to turn the area
into a major entertainment and gambling centre.
Regularly you would see the big blue bus that
was used by the casino and hotel operations to
shuttle customers from one hotel and casino to
another.
Just about the same time it had been rumored
and then confirmed that he was ill, suffering
from heart problems and been hospitalized.
This fact was kept secret from the investors
for some time for fear of a negative reaction
and run on the investment company.
Just about everything the Cuban-American Milanés
touched turned to success and he was making an
name for himself in the Costarican landscape.
Abel Pacheco, the president of Costa Rica says
that Milanés gave him "the bad
vibe", telling of his lunch meeting with Milanés
and another Cuban where Milanés offered a
sizeable campaign contribution.
Pacheco tells of calling the Security
Minister, Rogelio Ramos, and asking about the
man he had just met. Ramos quicky responded
that there 'questionamientos'. He graciously
declined the offer. "As fas as I know, no
monies were received by him and I gave the
order that from this man nothing should be
accepted", Pacheco added.
Those
who remember him recount, 'he left Cuba with
nothing'. On his flight from Cuba, heading for
the former Soviet Republic, he remained in
Madrid taking advantage of the stop over.
He later went to Canada, where with the help
of a friend hid in the trunk of a car to enter
the U.S. There he worked at different jobs.
While in Miami, he found the help of a Cuban
lady, who today has close ties to Costa Rica.
With
his whereabouts unknown, his offices closed
and everything within them removed, a criminal
investigation and anyone associated with the
casinos and hotels denying his involvement, Milanés
leaves thousands of investors, with millions
of dollars invested, hung out to dry.
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