Closing statements in the trial of financier Osvaldo Villalobos, accused of fraud, money laundering and illegal financial intermediation in connection with an unregulated high-yield investment operation called “The Brothers,” are expected next week.
The defense called its last witness to the stand yesterday, and state prosecutors told The Tico Times their last witness is expected to appear in court Monday.
Villalobos and his fugitive brother Luis Enrique allegedly ran the defunct high-interest personal loan business to the tune of an estimated $800 million (TT, Feb. 1, 2003). The Brothers shut down in late 2002, Luis Enrique disappeared, Costa Rican authorities froze as much as $12 million in Villalobos bank accounts, and thousands of “investors” were unable to retrieve the money they had “loaned” the operation in exchange for monthly interest payments of 2.8-3%.
Costa Rican authorities began investigating the business after Canadian police launched an investigation into $350,000 that alleged drug smugglers deposited with the Villalobos group.
Osvaldo Villalobos has always maintained that he ran a legitimate currency exchange business, Ofinter S.A., and had nothing to do with his brothers' loan business.
State prosecutor Walter Espinoza told The Tico Times the last witness, one of the affected investors, will appear Monday. Closing statements will begin after that witness has appeared. Espinoza said closing statements from the defense and prosecution in this trial, which began in early February (TT, Feb. 9) could finish as soon as April 27.
Judges will then have up to 10 business days to declare a verdict. |
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