Court Sets Trial Date In
Banco Elca Case
The three men accused of
"asociación ilícita,
administración
fraudulenta y estafa"
that brought down the
small private bank,
Banco Elca, will go to
trial in eight months.
The Tribunal de
Goicoechea set March 13,
2008, for the start of
the trial against three
bank officials,
Alvarado, González and
Filloy.
The three were high
ranking bank officials,
led by Alvarado in the
president's chair.
The three men are said
to be responsible for
the bank's failure due
to their actions
resulting in problems
with the bank's credit
portfolio.
The trial is expected to
last two months.
The Banco Elca was
intervened by the
Superintendencia
General de Entidades Financieras
(SUGEF) on June 29, 2004, when it felt
that creditors and depositors were being placed at risk. It had been
investigating the operations of the bank for some time and it felt
that the bank was heading for trouble as it's reserves were well
below the 10% required by all banks.
SUGEF also based it's action on irregularities it found in credit
activities of the bank and attributed those irregularities directly
to the bank's president, Carlos Alvarado Moya, whose family started
Elca as a financial corporation some 20 years back and became a
certified bank in 1999. |
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